I am working on the following two models.

Logit: Binary outcome $y$ ($y=1$ if paid more than the item value to win the item, $y=0$ otherwise) $$ y=b_0+x_1b_1+x_2b_2+x_3b_3. $$

OLS: Continuous dependent variable $z$ (amount of overpayment) $$ z=b_0+x_1b_1+x_2b_2+x_3b_3+e. $$

1. Do I need to estimate these two models jointly (instead of separately) since the dependent variables seem to be related?

2. If joint estimation is a must, which method (or package in Stata) should I use? Seemingly unrelated regression suest?

3. Any other thoughts in terms of methodology?

I am working on the following two models.

Logit: Binary outcome $y$ ($y=1$ if paid more than the item value to win the item, $y=0$ otherwise) $$ y=b_0+x_1b_1+x_2b_2+x_3b_3. $$

OLS: Continuous dependent variable $z$ (amount of overpayment) $$ z=b_0+x_1b_1+x_2b_2+x_3b_3+e. $$

My questions:

1. Do I need to estimate these two models jointly (instead of separately) since the dependent variables seem to be related?
2. If joint estimation is a must, which method (or package in Stata) should I use? Seemingly unrelated regression suest?
3. Any other thoughts in terms of methodology?

I am working on the following two models.

logit: Binary outcome (1=pay more than the item value to win the item, 0 otherwise)=b0+x1b1+x2b2+x3b3

OLS: Continuous dependent variable (amount of overpayment)=b0+x1b1+x2b2+x3b3+e

1. Do I need to estimate these two models jointly (instead of separately) since the dependent variables seem to be related?

2. If joint estimation is a must, which method (or package in Stata) should I use? seemingly unrelated regression -suest-?

3. Any other thoughts in terms of method?

Thank you!

I am working on the following two models.

Logit: Binary outcome $y$ ($y=1$ if paid more than the item value to win the item, $y=0$ otherwise) $$ y=b_0+x_1b_1+x_2b_2+x_3b_3. $$

OLS: Continuous dependent variable $z$ (amount of overpayment) $$ z=b_0+x_1b_1+x_2b_2+x_3b_3+e. $$

1. Do I need to estimate these two models jointly (instead of separately) since the dependent variables seem to be related?

2. If joint estimation is a must, which method (or package in Stata) should I use? Seemingly unrelated regression suest?

3. Any other thoughts in terms of methodology?