Categorical dependent variables in reg3 models (simultaneous equation modeling)

[Janka Vanschoenwinkel]

Is there a way to use the reg3 models with categorical dependent variables? I would like to estimate the following simultaneous equation model but the dependent variables Irrigation and Croptype are categorical variables (2 and 10 categories respectively).

1. Irrigation = climate + Croptype + subsidies +....
2. Croptype = geography + climate + Irrigation + ......

Thanks for you time and help!


http://www.stata.com/manuals13/rreg3.pdf

[Marcos Almeida]

I wonder whether gsem wouldn't fit your needs.

[Janka Vanschoenwinkel]

Hey Marcos,

I am looking into the cmp program now. The gsem is only available for Stata 13 and higher. I only have Stata 12. Nevertheless, your hint made me fall on the cmp program. I am trying to figure that out now!

Thanks for your help!

[Janka Vanschoenwinkel]

Hi Marcos, I just wanted to let you know that I obtained STATA 14 now and that I am working with the gsem package. Thanks!