Greetings,
I am trying to estimate a two equations simultaneously, but imposing an
assumption about the correlation of the error structure across the two
equations. For example,
equation 1: C=X'b + u
equation 2: Y=X'a + d*C + e
And imposing the condition that cov(u,e)=rho
Is there a command in Stata that will allow me to do this, or do
I have to program this?
With thanks,
_______________________________________________________________________________
Chang-Tai Hsieh ph.: (510) 642-2617
Associate Professor fax: (510) 642-6615
Department of Economics assist.: (510) 643-9044
University of California, Berkeley web: elsa.berkeley.edu/~chsieh
Berkeley, CA 94720-3880 email: [email protected]
_______________________________________________________________________________
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