Dear all
I am estimating a simultaneous equation model using 2sls. I have 3 equations as follows:
Labor= f (Health, Health Insurance, X1, X4) ; Re Probit
Health= f (Labor, Health Insurance, X2 , X4) ; Re Oprobit
Health Insurance= f (Labor, Health, X3, X4) ; Re Probit
where,
X1 is a set of exogenous variables that only affect Labor equation
X2 is a set of exogenous variables that only affect Health equation
X3 is a set of exogenous variables that only affect Health Insurance equation
X4 is a set of exogenous variables that affect three endogenous variables (Labor, Health , and Health Insurance)
Plus my data is an unbalance panel.
Can I use reg3? I have tried the following command:
reg3 (Labor = i.Health i.Health Insurance X1 X4, xtprobit) (Health= i.Labor i.Health Insurance X2 X4, xtoprobit) (Health Insurance= i. Labor i.Health X3 X4, xtprobit), 2sls first
The Stata automatically recognizes the exogenous and endogenous variables. However, when it shows the first stage estimations the standard errors are missing and the only numbers we have are the predicted coefficients. But most of variables are significant.
However, when I use 2sls equation by equation, the results are different from reg3.
I greatly appreciate if anyone can help me with it.
Best,
Maryam
I am estimating a simultaneous equation model using 2sls. I have 3 equations as follows:
Labor= f (Health, Health Insurance, X1, X4) ; Re Probit
Health= f (Labor, Health Insurance, X2 , X4) ; Re Oprobit
Health Insurance= f (Labor, Health, X3, X4) ; Re Probit
where,
X1 is a set of exogenous variables that only affect Labor equation
X2 is a set of exogenous variables that only affect Health equation
X3 is a set of exogenous variables that only affect Health Insurance equation
X4 is a set of exogenous variables that affect three endogenous variables (Labor, Health , and Health Insurance)
Plus my data is an unbalance panel.
Can I use reg3? I have tried the following command:
reg3 (Labor = i.Health i.Health Insurance X1 X4, xtprobit) (Health= i.Labor i.Health Insurance X2 X4, xtoprobit) (Health Insurance= i. Labor i.Health X3 X4, xtprobit), 2sls first
The Stata automatically recognizes the exogenous and endogenous variables. However, when it shows the first stage estimations the standard errors are missing and the only numbers we have are the predicted coefficients. But most of variables are significant.
However, when I use 2sls equation by equation, the results are different from reg3.
I greatly appreciate if anyone can help me with it.
Best,
Maryam
