help neoclassical
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Title

neoclassical -- estimates neoclassical education transitions model

Syntax neoclassical Y1 "TC1" "TV1Names" "Exclusions" Y1Independent Y2 "TC1" "TV2Names" Y2Independent deff [cluster] ; Description

neoclassical estimates a bivariate probit model with selection with coefficient > s re-scaled to facilitate cross-equation testing for equality. It is termed neoclassical for it is a variant of the neoclassical education transitions fram > ework proposed in Lucas, Fucella, and Berends (2011). Note that the first transition > appears in the second equation in the output. Yet, in specifying the model the > temporally earlier transition is always regarded as the first transition. The estimates are the re-scaled coefficients and the appropriate standard errors. > Any subsequent statistical tests will use this second set of results. A related co > mmand, retroclassical, estimates a neoclassical education transitions model while fixing the cross-equation error variance at zero. This provides the result one > would obtain by calibrating the coefficients across transitions, yet not accounting f > or selection. Thus, it is a mid-way point between a neoclassical approach and the > classical approach.

Y1 is the outcome variable for the first transition--this is the selection equation for the second transition

TC1 contains the list of time constant variables; these should be common across the first and second equations. The set of variables should be in quotes both times they are listed, and in the same exact order.

TV1Names contains the names of the variables that have specific values for the first transition (and possibly different values for the second transition). The set of variables should be in quotes

Exclusions are those variables in the selection equation that are not in the equation for the second transition. An explicit category is made for these variables to reinforce the necessity of having such variables to identify the selection process. The set of variables should be in quotations, even if it is only 1 variable

Y1Independent is the total number of independent variables in the first equation

Y2 is the outcome variable for the second transition--this is the last of the two transitions

TV2Names contains the variables that have specific values for the second transition (and possibly different values for the first transition). These variables should be in quotes

Y2Independent is the total number of independent variables in the second transition equation

deff MUST be supplied. It is a design effect and must be listed as 1.0 if there is no design effect.

cluster is a variable you may use to obtain Huber-White standard errors. This is optional.

Also see

Lucas, Samuel R., Phillip N. Fucella, and Mark Berends. 2011. "Neo-Classical Education Transitions: A Corrected Tale for Three