Dear Statalisters,
Does anyone know how to compute indirect and direct marginal effects in
the recursive bivariate probit model?
The model I considered is:
Y1 = f(Y2, X2, X3)+e1
Y2 = h(X2, X3, X4)+e2
where X2 is a binary variable.
I want to calculate the total effect of X2 on Y1, following Greene
approach in "Gender Economics Courses in Liberal Arts Colleges",
summarized in his econometric textbook. The difference with Greene is that
the Rho correlation coefficient between error terms is not zero in my
case.
Thank you for your help.
Nolwenn Roudaut
Lecturer in Economics
France
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