[R] Probit model- endogeneity issue

[hannelore nelissen]

Dear all,
I am having some issues with using the IV strategy for an endogeneity problem in terms of a probit model.  In particular, I want to follow a two-stage procedure where I estimate a probit on the decision to peg the exchange rate, and then use the predicted values in the second stage regression. So, I need to get a probability that the country has a peg (estimated based on the Z variables). So, in the second stage, I have to include this estimated probability of the first stage (and exclude the Z variables that showed a significant effect). However, I do not know how to get this estimated probability of the first stage which I can then include in my second stage?
Can somebody help me with the command I should use?


I would really appreciate it, thanks Dear all,




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