Hello,
I'm trying to implement 2SRI, where my 1st stage is an ordered probit with y = 0, 1, 2 and my 2nd stage is an ordered probit ranging from 0 to 20. Could someone help me in calculating the 1st stage residual(s) in order to add it/them to the 2nd stage equation? Thanks.
I'm trying to implement 2SRI, where my 1st stage is an ordered probit with y = 0, 1, 2 and my 2nd stage is an ordered probit ranging from 0 to 20. Could someone help me in calculating the 1st stage residual(s) in order to add it/them to the 2nd stage equation? Thanks.