We could just use robust standard errors, but if devising an asymptotically efficient linear probability model (using WLS), one should first ensure fitted values are not greater than 1 or less than zero.
I have coded a transformation for an adjustment, but it takes two entries:
Code: Select all
series yhat = @recode(fitted>1,.999,fitted)Code: Select all
series yhat2 = @recode(yhat<0,.001,yhat)Thanks
