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  • Three Stage Sequential Regression

    Hello,

    I am currently writing my dissertation on the political influences on the distribution of FEMA natural disaster expenditure within states in the US. I have data from 2001 to 2020 on all counties on the following states: New York, Florida, Louisiana and Texas.

    The process of counties getting FEMA expenditure is as follows:
    1. The county receives a disaster declaration from the President
    2. If the county receives a disaster declaration, it can then apply for Public Assistance (i.e. relief) expenditure
    3. If the county receives Public Assistance expenditure it can apply for Hazard Mitigation Grant Programme expenditure which is capped at 15% of Public Assistance (and Individual Assistance) expenditure

    In previous literature they have used the Heckman regression to model stages 1 and 2 (i.e. binary decision of getting a disaster declaration and then subsequent level of expenditure). However, I want to model all 3 sequential stages together.

    Is there a way of doing this in Stata. Ideally it would be a package already in Stata (i.e. I don't have to set something up) as I am fairly time constrained.

    Thanks in advance!
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