Dear List-members,
I have the following question about Inverse Mill's Ratio:
I run a probit regression for the selection equation and
want to calculate the inverse mill's ratio.
I found the following formula:
gen imr = normd(y_hat)/normprob(y_hat)
where "y_hat" is the fitted value from the probit equation.
I tried searching for "normd" and "normprob" functions to
see what this formula really does but couldn't find these
functions in STATA Help.
Could someone please confirm whether this is the correct
formula for calculating the inverse mill's ratio? Thank
you very much.
Regards,
Nishant
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