I have some questions in using bootstrap in my task.
I would like to estimate labor supply equations of husbands and wives.
(One for husbands, one for wives) I am going to use a two-step
procedure. First, I estimate the husband's and wife's wage equations on
instruments by OLS. Second, I estimate jointly the husband's and wife's
labor supply equations with Maximum Likelihood (using the predicted
wages in the first step). For this step, I am going to use the ml commands.
I would like to use bootstrap to obtain the standard errors or
confidence interval of parameters of the labor supply equation (reduced
form) and some non-linear functions of these parameters. I want to do
this because I don't know how to adjust standard error for the first
stage estimation, and also approximation for standard errors may be poor
for non-linear functions of parameters.
The data is from a cross-sectional data so IID can be assumed.
I have the following questions in actually carrying out the above
estimation.
1. Is my understanding of the use of bootstrap correct? Any special
thing I should take care in my case?
2. I know there is a bootstrap command in Stata. Can it be used to do
bootstrap in a two-stage process?
3. How can I obtain the standard error/confidence interval estimates
from bootstrap of a non-linear function of parameter in Stata?
