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RE: st: Warning convergence not achieved


From   "Santos Silva, J.M.C." <jmcss@essex.ac.uk>
To   <statalist@hsphsun2.harvard.edu>
Subject   RE: st: Warning convergence not achieved
Date   Sun, 5 Aug 2012 22:05:39 +0100

Dear Ebru,

It may be the case that one of your industry dummies is equal to 1 only when
y is equal to zero. If that is the case, like others have suggested, you may be 
able to bypass the problem by grouping some industries.

Also, as I suggested before, run a probit with the industry dummies and see
if you have a "perfect predictor"

All the best,

Joao

> Dear Joao,
> 
> Thank you. Actually, when I run the Tobit estimation it works very well. But 
> when I add industry dummies (9 industries) into the model it gives the 
> warning. How can I deal with that?
> 
> Kind regards
> Ebru


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