Exclusion bias in sample-selection model estimators

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Exclusion restrictions are routinely used in sample-selection models with "selection" and "outcome" equations. A false restriction, however, can cause an "exclusion bias" for the outcome equation estimator. In this paper, the specific form of the exclusion bias is derived for various sample-selection model estimators. Furthermore, it is shown that the outcome equation parameters for regressors with zero coefficients in the selection equation are immune to exclusion bias if only one regressor is excluded. Exclusion bias, or a lack thereof, is verified through a simulation study with the regressors taken from Mroz (1987).

Original languageEnglish
Pages (from-to)229-236
Number of pages8
JournalJapanese Economic Review
Volume54
Issue number2
Publication statusPublished - 2003 Jun 1
Externally publishedYes

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Exclusion
Sample selection model
Estimator
Coefficients
Simulation study

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Exclusion bias in sample-selection model estimators. / Lee, Myoung-jae.

In: Japanese Economic Review, Vol. 54, No. 2, 01.06.2003, p. 229-236.

Research output: Contribution to journalArticle

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