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st: Binary & continuous endogenous vars
I think similar Qs have been asked before, but I haven't been able to
find the answers.
X1 and X2 are exogenous and continuous.
X3 and X4 are endogenous and have reciprocal effects on each other.
X3 is a dichotomy, X4 is continuous.
For X3, I can use ivprobit, e.g.
ivprobit x3 x1 (x4 = x1 x2)
But is it legit to use ivreg for X4, e.g. do something like
ivreg x4 x2 (x3 = x1 x2)
I would assume not, but I am not sure what else I can do/ should do.
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Richard Williams, Notre Dame Dept of Sociology
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