st: Two stage least squares

["Susaeta ,Andres" <asusaeta@ufl.edu>]

Dear statalist:

I have a supply and demand equations which are not linear in the 
variables. We have two troublesome variables: y1 and y2 are 
endogenous. I want to perform a 2SLS or 3SLs but the endogenous 
variables are dividing other variables. I tried to use ivreg or 
reg3 but Stata doesn't allow me to do it. I guess Stata (when 
programming) doesn't allow to include variables multiplying 
others. Any suggestions?

y1= a0 + a1*(x1/y2)^0.5 + a2*(x2/y2)^0.5

y2= b0 + b1*x3 + b3*(x4/y1)^0.5

thank you very much!

Susaeta Larrain,Andres


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