I have bivariate probit model where I model the transition in and out of poverty between two periods. I am however only interested in the probability of being poor in period 2(either staying poor or entering poverty). That means that the two transitions that I am interested in are the probability of being poor in period 2 conditional of being poor in period 1 together with the probability of being poor in period 2 conditional on being non-poor in period 2. More formally, I have:
y1: poverty status in period 1
y2: poverty status in period 2
hh: vector of household characteristics
But how would you model that in Stata with the conditionalities. I have put in:
bivariate y1 y2 hh
But as far as I can see this will not estimate the probabilities that I want. Can anybody please help?
Many thanks,
Kristian
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