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st: Censored Least Absolute Deviation and Probit


From   Reshmi Sengupta <[email protected]>
To   [email protected]
Subject   st: Censored Least Absolute Deviation and Probit
Date   Sun, 4 Mar 2012 10:58:15 -0600

Dear Friends,

I need your help on the following question:

Can I estimate a CLAD (Censored Least Absolute Deviation) and a Probit
model simultaneously?

I have the following 2 equations:

(1) Y1*=a0 + a1*Y2* + a2*X1 + e1

where Y1=1 if Y1*>0
 and   Y1=0 if otherwise

(2) Y2*=b0 + b1*Y1*+ b2*X2+e2

where Y2=Y2* if Y2*>0
  and  Y2=0  if otherwise

I am trying to estimate equation (1) using Probit Maximum Likelihood
(ML) and equation (2) using CLAD.

Please let me know.

I will sincerely appreciate any help.

Best Regards,

R. Sengupta
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