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st: IV estimation for probit models with binary endogenous variable...?


From   Kit Baum <[email protected]>
To   [email protected]
Subject   st: IV estimation for probit models with binary endogenous variable...?
Date   Thu, 02 Apr 2009 06:39:26 -0400

<>	
Fiona said
I have a model of the following form:

y = a + b1x1 + b2x2 + ... +xn + u

Where y = a binary dependent variable (a probit model)
X1 is a binary variable with potential reverse causality (endogenous)
x2 - xn are exogenous variables.

I wondered whether you may use IV for this? and how I would go about this?


She should look into whether -cmp- (findit cmp) can be used in this setting.

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
An Introduction to Stata Programming | http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html



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