Hi everyone,
It looks like my previous message had formatting problems, so here is
the question again (sorry):
I have panel data, and I am trying to estimate a model with
simultaneous equations similar to that in Altonji et al. (2005):
Z=X*beta+u
Y=X*gamma+alpha*Z+v
where the correlation between u and v, p, is
p=Cov(X*beta, X*gamma)/Var(X*gamma)
I was considering trying to use reg3, but it looks like the
constraints for reg3 are constraints on the coefficients rather than
the error terms. Is there a way to impose this constraint on the
error term? Also, is there a reg3 that is meant for panel data?
I would really appreciate any ideas.
Thanks,
Molly
*
* 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/
