Hi,
I have 2 endogenous variables in my model, y1 and y2, in which y2 is price and is a continuous variable, and y2 is a discrete variable (takes 1, 2, 3). I want to run a 2SLS model in which y2, the categorical variable, is the dependent variable in the first stage and y1 is the dependent variable in the second stage. I have no idea what to do and would appreciate your help to address this.
As a side note, I want to use a multinomial logit model for the first stage in which the categorical variable is the dependent variable.
Thanks and peace,
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