Hi all,
I am trying to correct for a model with a potential endogenous binary
explanatory variable by using the control function approach.
Since my endogenous variable is binary, my first stage is a probit, and the
second stage is OLS (with the estimated errors from the first-stage as one
of the explanatory variables).
Can someone please point me to an easy way of implementing this in Stata to
get correct standard errors and estimates? Code/Routines will be
particularly helpful, but I'll also be thankful for illustrations, etc.
Thanks a lot!
--- Deepak
PS: Apologies if this looks like a repeat posting. My first take in the
morning doesn't seem to have made it.
--
Deepak Hegde
University of California --- Berkeley
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