[Limdep Nlogit List] A simultaneous model for y and z with y limited to (0, 1) and z truncated counts

[Russell Rimmer]

Dear Subscribers, 
I would like to estimate the following model:
y = a0 + a1*z + a2* z^2 +a3*(lagged y) + controls
z = b0 + b1*y + b2*(lagged y)

y is restricted to the unit interval (0, 1) and z consists of the
counts 0, 1, 2, 3, 4, 5 and 6.  I have data for two periods only.

Using nonlinear 3SLS I have estimated a similar system excluding the
term in z^2 and treating y as NOT restricted to (0, 1).  However, I
don't know how to estimate the two parameters in the beta distribution
for y when it is restricted to (0, 1) while simulataneously estimating
both y and z.

Can anyone help please?

Regards,
Russell

Russell Rimmer
Professor of Strategic and Human Resource Management
Paisley Business School
University of Paisley
Paisley PA1 2BE
Tel: 0141 848 3447
Fax: 0141 848 3614


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