[Limdep Nlogit List] Another selection qeustion-with censored model

[Fred Feinberg]

Can you clarify? Forgetting about Z totally for the moment, it sounds like, in the second equation, you never observe both X and Y together, for any observations. That is, when X is "absent", you observe Y, but when X is "present", you don't observe Y. I'm not even sure how one would write a likelihood for that one
equation, even if its error term was uncorrelated with the model for Z. Was there a typo here?

FF

Martin Chun Qiu wrote:

> Dear Limdepers:
>
> I am also estimating a selection problem where the first equation is a standard probit on z. In the second equation, the dependent variable y is censored by x. The presence of x is determined by z. If z=1, x is present and y is censored. If z=0, x is absent and y is not censored. Any thoughts to handle model like this?
>
> Warm regards,
>
> Chun (Martin) Qiu
> Desautels Faculty of Management
> Montreal, QC
> Canada H3A 1G5
>
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