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st: simultaneous equation, continuous and dummy variable
Hello Statalisters,
I would like to estimate the following simultaneous-equation model,
Reg C X Y
Logit X Y W
Where C is a continuous variable (consumption) and X is a dummy. If I am
right, sureg and reg3 consider the case of continuous variables
I used the endogenous switching regression model to control for the
endogeneity of X:
1) Logit X Y W
2) generate the two selection terms (inverse Mill's ratio) for X=0 and for
X=1
3) reg C X Y X*first selection term (1-X)*second selection term
This is a second best solution.
Does anyone have any suggestions to estimate the simultaneous equation
model?
Thanks in advance.
Francesca
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