Dear Professor Cottrell* *;
Thanks so much for your kind and informative response on my question
entitled *“**Help on simultaneousus equation model”***
In this regard I have got sufficent answers on the questions I asked you.
Nevertheless, I still want your suggestions on predicted probabilities and
their application to reduced form equations and if there is that sort of
application in GRETL.
I understand now GRETL does not predict probabilities rather give us fitted
or residual values after we estimate an ordered probit model and ask the
program to generated predicted values.
Now my question is can I use this predicted value in my second stage ordered
probit regression or are these fitted value equivalent to *P^ and D^ given
original endogenous ordered variables *P* and D*?
I really thank you for any assistance which you might be able to provide.
With kind regards,
Tenessa L.
PhD Student
Haremaya University, Ethiopia
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