Hello everyone!
I wish to see the impact of income from an activity on various types of household expenditure. Thus, i wish to use seemingly-unrelated regression. However, i am facing two issues here. First, not all the individuals are involved in that activity leading to the problem of sample selection. Also, there is a potential simultaneity between income from that activity and household expenditure leading to the problem of endogeneity.
Can anyone help me with which model to use in a such a situation? Or is there any manual two-step procedure for this?
Thanks
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