I would probably just stick with the ownership propensity, i.e., the
xb index from the first stage. That would let you run the M-T
estimation (or sandwich, from Hardin's paper) without major
modifications. I wouldn't think there would be any great efficiency
advantages from using the two probabilities that are constructed from
that propensity, and thus probably are highly correlated, anyway.
On 1/17/07, X W <[email protected]> wrote:
Thank you very much for you suggestions, Arne and
Stas.
The dependent variable in the first stage is a proxy
for ownership rights to land. In this case, 0
corresponds to no ownership rights (only user/renter
rights), 1 to partial ownership rights (with
stipulations on sale), and 2 to full ownership rights.
I have an instrument (z) to solve the endogeniety of
the ownership rights variable in the second stage
regression.
If there is another (easier??) approach that would fit
this application, I would be very grateful to hear it.
Otherwise, I will look into how to use Mata.
Thanks again!
Xinyi
--
Stas Kolenikov
http://stas.kolenikov.name
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
