Dear All,
I would like to estimate the following model:
However, I suspect a sample selection problem, so I would like to implemente the Heckman correction. Hence I estimate:
I have been advised not to include the inverse Mill's ratio (imr) directly into my model, because it could produce a bias in the estimation of the standard errors, but to use heckman command in stata. However, as you may notice I have an endogenous regressors in my main equation. Is there any command to perform an iv estimation with heckman correction. I have been searched a little bit around, but I was not able to find anything that can be implemented in Stata. If such a command does not exist, how can I get correct standard errors?
Thnaks for your help.
Dario
I would like to estimate the following model:
Code:
ivreg2 y x1 x2 (x3=z1 z2 z3 z4), first cluster(id) endog(x3)
Code:
probit dv x1 x2 x3 x5 predict fitted, xb predict pdf=normalden(fitted) predict cdf=normal(fitted) gen imr=pdf/cdf
Thnaks for your help.
Dario
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