I'm wondering if anyone has encountered the following and might have some
advice. I'd like to run a multi-stage model, and have looked at bivariate
probit (biprobit) but I'm not sure it's working for me.
I have a first equation that predicts treatment choice (3 possibilities),
A, A+B or C. So this could be estimated using a multinomial logit.
But, my second equation is a logit model whose outcome is an exit (failure)
conditional on treatment choice.
I tried using biprobit :
biprobit (A = X)
(exit = A B Y), cluster(id)
where X and Y represent covariate matrices with some overlap.
I have multiple observations per individual and use the cluster option.
This doesn't seem to be quite right though because A, A+B and C are unique
treatment choices even though A and A+B overlap.
