Re: st: Simulatenous equation model with xtprobit

["C.T.Shehzad" <c.t.shehzad@rug.nl>]

Dear Stas:

Yes, the difference between categories is same and y1 and y2 (actual 
values ) should cause x but they can be endogenous and that's why I am 
using simulateneous equation model. Unfortunately, I donot have access 
to the book mentioned by Maatren for one or two weeks and I have to rely 
solely on gallam manual for the time being.

As an alternate approach i can also use ivprobit but that doesnot 
account for panel structure of data.

Best regards,

Shehzad

Stas Kolenikov wrote:

> so if y's are ordinal, is the distance between categories 1 and 2 of
> y1 the same as the distance between categories 2 and 3? That's what
> your model explicitly assumes. Does your x depend on the realized
> values of y*, or on their continuous propensity counterparts?
>
> -gllamm- will do pretty much anything, you need to rearrange your data
> in a marginally tricky way, and form appropriate -link-s.
>
> On Fri, Aug 22, 2008 at 5:49 AM, Choudry T Shehzad <C.T.Shehzad@rug.nl> wrote:
>   
> > Thanks Maarten... gllamm seems relevant but I have a question again. My
> > model is like
> >
> > x = a + b1*y1 + b2*y2  + b3*y3
> > y1 = a2 + b4*y4 + b5* y3
> > y2 = a3 + b6*y6 + b4*y4
> >
> > where x is binary and y1 and y2 are ordered. This is balanced panel
> > dataset (countries and years) and I want to run simultaneous equation
> > model becuase I suspect y1 and y2 are endogenous. Are you suggesting me
> > to use structural equation modelling via gllamm? If the data had been
> > continuous, I would have gone for reg3 but now after reading gllamm
> > manual, I still could not get a clear idea that how can I model y1 and y2.
> >
> >     
>   

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