Re: st: IV estimation for probit models with binary endogenous variable...?

[Kit Baum <baum@bc.edu>]

<>
Antoine said
> In the following example, -cmp- and -biprobit- give the same results
>
> /*---------------------------*/
> clear
> set obs 1000
> drawnorm e1 e2, cov(1,0.5\0.5,1)
> drawnorm x1 x2 z1 z2
> g endog=(1+z1+z2+e1>0)
> g y=(1+endog+x1+x2+e2>0)
> cmp (y = endog x1 x2) (endog  = z1 z2), ind(4 4)
> biprobit (y = endog x1 x2) (endog  = z1 z2)
> /*---------------------------*/

If indeed -biprobit- is workable for this kind of model, there ought  
to be some example of its use in the manual and help file. It would be  
very useful to receive guidance from StataCorp developers as to  
whether this is an appropriate use of -biprobit-.

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming   
|   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html



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