Hi Sven

Well, so for the system ! It work quite well and is a neat feature. As 
you may micro data analysis often done with system estimators

>
>>
>> I wonder if it is possible to estimate systems with just one 
>> different variables ? Looking at the example scripts it seems so. 
>> Also with the tsls syntax i can normally specify different 
>> instruments for both equations nope ?
>>
>
> Could you rephrase that, I don't understand what you mean, sorry.

Yep  ! Well, up to now I was working on the AIDS demand system on 
microdata (I sent a few days ago a sample of my data and the 
accompanying script).

In this context all was easy because in the standard formulation of AIDS 
the same variables appear in each equation.

To sum up, because of theoritical constraints, the system covariance 
matrix is singular. Estimation is done by dropping one equation and 
homogeneity in prices is imposed costlessly by the use of price 
relatives of deleted good.

My concern now is that I have a nasty problem with my data : some are 
censored with nil consumption. Thats means serious biais proportional to 
the degree of censoring. Unfortunately, one of my goods suffers from 
substantial censoring (>40 %). To overcome this I use first a probit 
model and compute the fitted Mills ratios [ f(x) /F(x) = dnorm(yhat) / 
cnorm(yhat) ]that are used as extra instruments in the AIDS system.

Finally, my problem is that to do so, I have a system where each 
equation have all the same variables in common, except one => the Mills 
ratio. GRETL does not estimate the system when i specify using the tsls 
syntax which can in principle allow equation specific instruments lists. 
here is where i am.

cheers & thanx

Franck





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