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st: Suggestion on the estimation approach


From   Quang Nguyen <quangn@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: Suggestion on the estimation approach
Date   Fri, 15 Apr 2011 01:03:29 +0700

Deal all:

We have a theoretical model on migration decision. According to the
model, the individual will migrate if  the wage in the destination
area is greater than some threshold level. This level in turn can be
expresseed as y = x1*x2 + beta*x2 where y is the threshold level; x1
and x2 are some variables observed in the data;  beta is some
behavioral parameter has to be estimated.

In the migration equation, we can write:

Migration = Demographic variable + I * ( obsberved wage >= threshold
level)  where I is an indicator function which equals 1 if the
observed wage is greateror equal to the threshold level.

Can you suggest some approach to estimate the estimated coeffience for x1, x2?

--
"My father gave me the greatest gift anyone could give another person,
he believed in me." - Jim Valvano



-- 
"My father gave me the greatest gift anyone could give another person,
he believed in me." - Jim Valvano

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