Monotonicity Conditions and Inequality Imputation for Sample-Selection and Non-Response Problems
Under a sample selection or non-response problem where a response variable y is observed only when a condition Î´=1 is met, the identified mean E(y|Î´=1) is not equal to the desired mean E(y). But the monotonicity condition E(y|Î´=1)â‰¤E(y|Î´=0) yields an informative bound E(y|Î´=1)â‰¤E(y), which is enough for certain inferences. For example, in a majority voting with Î´ being vote-turnout, it is enough to know if E(y)>0.5 or not, for which E(y|Î´=1)>0.5 is sufficient under the monotonicity. The main question is then whether the monotonicity condition is testable, and if not, when it is plausible. Answering to these queries, when there is a "proxy" variable z related to y but fully observed, we provide a test for the monotonicity; when z is not available, we provide primitive conditions and plausible models for the monotonicity. Going further, when both y and z are binary, bivariate monotonicities of the type P(y,z|Î´=1)â‰¤P(y,z|Î´=0) are considered, which can lead to sharper bounds for P(y). As an empirical example, a data set on the 1996 US presidential election is analyzed to see if the Republican candidate could have won had everybody voted, i.e., to see if P(y)>0.5 where y=1 is voting for the Republican candidate
Imputation; Monotonicity; Non-response; Orthant dependence; Sample selection
2004 Australasian Meeting of Econometric Society
Monotonicity Conditions and Inequality Imputation for Sample-Selection and Non-Response Problems. (2004). 2004 Australasian Meeting of Econometric Society. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/835
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