I am currently using STATA 15 and I am trying to run a probit model of an indicator variable "Home Bias" (1 if person owns stock in domestic country/0 if not) on three indicator variables for whether an individual is in a specific generation (MG=millenial, GX=gen x, BB=baby boomer) and several controls and survey year controls. I run this model using sampling weights and robust standard errors. (refer to ANALYSIS WEIGHTS for more info on the weights used)
The model does not converge if I either include the sampling weights or, if sampling weights are included, I include all three generational indicators.
Code:
probit HB MG GX BB age education white male income_xtile networth_xtile yrx* [pw=wgt] if age<=36 , vce(robust)
| Home Bias | MG | GX | BB |
| 0 | 255 | 414 | 732 |
| 1 | 1354 | 2916 | 983 |
| Total | 1609 | 3330 | 1715 |
Additionally from similar threads, I used the -iter()- option and found that BB may be the problematic variable.
Code:
. probit HB MG GX BB age education white male income_xtile networth_xtile yrx* [pw=wgt] if age<=36 , iter(10) vce(robust)
note: yrx1 != 0 predicts failure perfectly
yrx1 dropped and 571 obs not used
note: yrx10 omitted because of collinearity
Iteration 0: log pseudolikelihood = -10994329
Iteration 1: log pseudolikelihood = -9995004.5
Iteration 2: log pseudolikelihood = -9962652.9
Iteration 3: log pseudolikelihood = -9962035.8
Iteration 4: log pseudolikelihood = -9961948.4
Iteration 5: log pseudolikelihood = -9961932.9
Iteration 6: log pseudolikelihood = -9961930.8
Iteration 7: log pseudolikelihood = -9961930.4
Iteration 8: log pseudolikelihood = -9961930.3
Iteration 9: log pseudolikelihood = -9961930.3
Iteration 10: log pseudolikelihood = -9961930.3
convergence not achieved
Probit regression Number of obs = 6,103
Wald chi2(14) = .
Prob > chi2 = .
Log pseudolikelihood = -9961930.3 Pseudo R2 = 0.0939
--------------------------------------------------------------------------------
| Robust
HB | Coef. Std. Err. z P>|z| [95% Conf. Interval]
---------------+----------------------------------------------------------------
MG | -4.980324 .3090391 -16.12 0.000 -5.58603 -4.374619
GX | -5.266788 .3430286 -15.35 0.000 -5.939112 -4.594464
BB | -5.707422 . . . . .
age | .0179968 .0089211 2.02 0.044 .0005117 .035482
education | -.1401491 .0152256 -9.20 0.000 -.1699908 -.1103074
white | .2162418 .0593501 3.64 0.000 .0999177 .3325659
male | -.3093737 .0855674 -3.62 0.000 -.4770827 -.1416647
income_xtile | .023847 .0030531 7.81 0.000 .017863 .029831
networth_xtile | -.0305111 .0029032 -10.51 0.000 -.0362013 -.024821
yrx1 | 0 (omitted)
yrx2 | 1.811163 .1970285 9.19 0.000 1.424994 2.197332
yrx3 | 1.400022 .1790625 7.82 0.000 1.049066 1.750978
yrx4 | 1.295315 .1721532 7.52 0.000 .9579008 1.632729
yrx5 | 1.498705 .1551553 9.66 0.000 1.194606 1.802804
yrx6 | 1.108657 .147112 7.54 0.000 .8203223 1.396991
yrx7 | 1.05504 .1383681 7.62 0.000 .783844 1.326237
yrx8 | .7401583 .1168842 6.33 0.000 .5110695 .9692471
yrx9 | .356723 .1095997 3.25 0.001 .1419115 .5715345
yrx10 | 0 (omitted)
_cons | 7.084225 .5015207 14.13 0.000 6.101262 8.067187
--------------------------------------------------------------------------------
Note: 0 failures and 5 successes completely determined.
Warning: convergence not achieved
| year | MG | GX | BB |
| 1989 | 0 | 10 | 561 |
| 1992 | 0 | 111 | 563 |
| 1995 | 0 | 315 | 361 |
| 1998 | 0 | 498 | 230 |
| 2001 | 40 | 859 | 0 |
| 2004 | 75 | 557 | 0 |
| 2007 | 190 | 440 | 0 |
| 2010 | 335 | 350 | 0 |
| 2013 | 360 | 190 | 0 |
Would it be possible for someone to assist me in determining why this model will not converge and whether there is a possible solution to get around this issue?
Thanks in advance!
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