Re: st: -heckman- and -ivreg- AT THE SAME TIME

[jean ries <jean.ries@gmail.com>]

Tinna,

Your problem, as well as a solution to it, are discussed in Wooldridge 
(2002), chapter 17.4.2. The estimation  procedure is quite 
straightforward: -probit- -predict- and -ivreg- (or -ivreg2-). The 
harder part (as usual) is to find some plausible exclusion restrictions.

Good luck,

jean

Reference:
Wooldridge, J. M. (2002). Econometric analysis of cross section and 
panel data. MIT Press, Cambridge, MA.


> Date: Mon, 31 Oct 2005 14:41:00 -0500
> From: Tinna <statalist@gmail.com>
> Subject: st: -heckman- and -ivreg- AT THE SAME TIME
>
> Dear statalisters,
>
> I need to control for selection in the model I am estimating (e.g.
> - -heckman-), but I also suspect endogeneity (-ivreg2-). (see further in
> P.S. if needed)
>
> Is there a command that allows me to do both at the same time?
>
> Any suggestions or thoughts are appreciated.
>
> Tinna
>
> P.S. Basically I am estimating an hours worked equation, where I only
> have hours worked for those who's main activity is working (as opposed
> to being a student, disabled, retired, homemaker...). It is the
> coefficient of interest in this equation that is likely to be biased
> if not instrumented.
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