
Hi All
I am trying to estimate a simultaneous equation model as follows:

X = a.Y + b.Z + c.W
Y = d.Z + e.W

X is a categorical variable (0/1) and Y is a continuous variable. Can I use the tsls (two stage least square) function in the sem package to estimate this? Or, is there any other function that I can use in R?

Thanks in advance,
Sunil

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