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 language | English |
|---|---|
| Pages (from-to) | 229-236 |
| Number of pages | 8 |
| Journal | Japanese Economic Review |
| Volume | 54 |
| Issue number | 2 |
| Publication status | Published - 2003 Jun 1 |
| Externally published | Yes |
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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 journal › Article
}
TY - JOUR
T1 - Exclusion bias in sample-selection model estimators
AU - Lee, Myoung-jae
PY - 2003/6/1
Y1 - 2003/6/1
N2 - 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).
AB - 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).
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UR - http://www.scopus.com/inward/citedby.url?scp=0038757556&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:0038757556
VL - 54
SP - 229
EP - 236
JO - Japanese Economic Review
JF - Japanese Economic Review
SN - 1352-4739
IS - 2
ER -