2 stage regression

H_G — Sun, 23 Jun 2013 13:28:19 GMT

Hello,

I am running a logit regression, while because my dependent variable and my independent variable are affecting each other simultaneously , which is (as I understood ) the problem of endogeneity, I have to use instrumental variable, which I have to estimate by OLS.

would you please help me how can I do it in SAS?

My main regression is logit, and the regression for Instrumental variable is OLS.

for more explanation;my model is like following:

adoption_new_technology(dummy)= a1*(age)+a2*(education)+a3*(job)+ a4*(interest_buy_insurance)

here if some one is adopted to new technology, it will affect his decision on buying insurance. here we have indogeneity in " interest_buy_insurance "

Thanks

Re: 2 stage regression

1zmm — Sun, 23 Jun 2013 21:38:41 GMT

If you have access to the SAS/Econometrics and Time Series module, PROC MODEL should be able to fit this two-stage instrumental variable nonlinear model.

topic Re: 2 stage regression in Statistical Procedures

2 stage regression

Re: 2 stage regression