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, Verzonden vanuit Mail<https://go.microsoft.com/fwlink/?LinkId=550986> voor Windows 10
Probit model- endogeneity issue
1 message · hannelore nelissen