I am trying to estimate the impact of health status expectations (Exp_h) on consumption expectations. I performed a conditional mixed process -CMP-, because the model is non linear, and I have a way of thinking that the regressor (Exp_h (that is binary) is endogenous.
Then, I tried to estimate the model by considering random effects.
Code:
cmp(cons= Exp_h x2 x3 ||id:) (Exp_h=z1 z2 x2 x3|| id:) , ind ($cmp_oprobit $cmp_probit) cl(id) cov(indep unstruct)
Exp_h=endogenous dummy variable
z1 z2 =dummies IV variables
I get the results of the first and second stage equation and finally this last table, which I have difficulty interpreting.
Any suggestions would be welcome. Thank you very much.
Code:
Random effects parameters Estimate Std. Err. [95% Conf. Interval] Level: id Cons Standard deviations _cons .6071207 .0526769 .5121775 .7196637 Exp_h Standard deviations _cons .8759736 .0612121 .7638533 1.004551 Level: Observations Standard deviations Cons 1 (constrained) Exp_h 1 (constrained) Cross-eq correlation Cons Exp_h .4120378 .0875992 .2272259 .5682024
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