Message-ID: <PR2PR09MB316189FAAD84903158C44A69E9639@PR2PR09MB3161.eurprd09.prod.outlook.com>
Date: 2021-03-24T07:53:26Z
From: hannelore nelissen
Subject: Probit model- endogeneity issue
Dear all,
I am having some issues with using the IV strategy for an endogeneity problem in terms of a probit model. In particular, I want to follow a two-stage procedure where I estimate a probit on the decision to peg the exchange rate, and then use the predicted values in the second stage regression. So, I need to get a probability that the country has a peg (estimated based on the Z variables). So, in the second stage, I have to include this estimated probability of the first stage (and exclude the Z variables that showed a significant effect). However, I do not know how to get this estimated probability of the first stage which I can then include in my second stage?
Can somebody help me with the command I should use?
I would really appreciate it, thanks Dear all,
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