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RE: st: Censored Least Absolute Deviation and Probit


From   Cameron McIntosh <[email protected]>
To   STATA LIST <[email protected]>
Subject   RE: st: Censored Least Absolute Deviation and Probit
Date   Sun, 4 Mar 2012 16:34:02 -0500

Hi,

I think -cmp- would be your best bet. It does allow for simultaneous equations with a mix of link functions for accommodating a variety of particular response variable types:

Roodman, D. (2011). Fitting fully observed recursive mixed-process models with cmp. The Stata Journal, 11(2), 159-206.http://www.stata-journal.com/article.html?article=st0224http://ideas.repec.org/c/boc/bocode/s456882.html

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