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st: Multivariate probit with sample selection
From
"Knoller, Christian" <[email protected]>
To
"[email protected]" <[email protected]>
Subject
st: Multivariate probit with sample selection
Date
Wed, 17 Aug 2011 21:01:23 +0200
Hello,
I have a dataset that contains insurance choices of an insurance company's portfolio. Policyholders can decide whether to purchase a base contract or not. Those that have purchased the base contract can also purchase two additional coverages. I am interested in what policyholders purchase which of these two additional contracts.
The problem is that I do not observe if policyholders that have not purchased the base contract would have purchased the additional coverages. So running a bivariate probit regression only using those policyholders that have purchased the base contract might cause some sample selection bias.
Is it possible to estimate a bivariate probit regression with sample selection in advance, i.e. a model similar to heckprob but with an additional outcome equation, or in other words a model with one selection equation and two outcome equations?
Thank you very much,
Christian
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