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st: problem in biprobit with partial observability


From   健 张 <victerzj2@yahoo.com.cn>
To   statalist@hsphsun2.harvard.edu
Subject   st: problem in biprobit with partial observability
Date   Sat, 2 Apr 2011 23:59:13 +0800 (CST)

Hi, statalisters,
I am encountering a problem in writing the code of biprobit with partial observability. I have 402 firms, in which 268 firms are labelled as 0 and the rest are labelled as 1. So I define those 0 and 1 as my dependent variable y. Y is equal to y1 * y2. Those y1 and y2 are two latent variable and I dont observe y1 and y2. However, I am interested in y1 and y2. That is why I decide to use biprobit with partial observability. I found the code from http://www.stata.com/support/faqs/stat/biprobit.html. And that thread also describle very similar problem with mine. However, when I run the code provided in that thread, (generate y2 = y
biprobit (y x1 x2 x3)(y2 x1 x2 x4), partial ) stata report a error notice. It says "y is never 0". I interpret this notice as stata thinks all my obvervation in y is 1. But I did have observation with 0 in y. So I am really confused. Does any one know what happened in stata?
Thanks in advance!

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