Hi,
I am estimating the effect of health on employment status using 2-stage Residuals Inclusion (2SRI) model. My first stage is a xtoprobit and second stage is xtprobit. I need to calculate the residuals of the first stage and add to the second stage. Stata does not give you the predicted residuals after xtoprobit. First, How can I do it manually? Second, I run the following estimations, however, there is convergence issue. How can I resolve this issue. Many Thanks.
I am estimating the effect of health on employment status using 2-stage Residuals Inclusion (2SRI) model. My first stage is a xtoprobit and second stage is xtprobit. I need to calculate the residuals of the first stage and add to the second stage. Stata does not give you the predicted residuals after xtoprobit. First, How can I do it manually? Second, I run the following estimations, however, there is convergence issue. How can I resolve this issue. Many Thanks.
Code:
xtoprobit rshlt_ age married##child18_ lesshighschool college collegemore whitecollar2_ bluecollar wealth rconde hispanic black rsmoke rdrink midwest northeast west rhibpe rdiabe rcancre rlunge rhearte rstroke rpsyche rarthre rcovown yr1996 yr1998 yr2000 yr2002 yr2004 yr2006 yr2008 if ragender==2 & age <65 predict rshlt_fhat if e(sample) gen rshlt_fres=rshlt_-rshlt_fhat xtprobit rwork i.rshlt_ c.rshlt_fres c.age i.married##i.child18_ i.lesshighschool i.college i.collegemore i.whitecollar2_ i.bluecollar c.wealth c.rconde i.hispanic i.black i.rsmoke i.rdrink i.midwest i.northeast i.west i.rcovown i.yr1996 i.yr1998 i.yr2000 i.yr2002 i.yr2004 i.yr2006 i.yr2008 if (ragender==2 & age<65), re dif
