Publication Type
Journal Article
Version
publishedVersion
Publication Date
2003
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). JEL Classification Numbers: C24, C34. [ABSTRACT FROM AUTHOR]
Discipline
Econometrics
Research Areas
Econometrics
Publication
Japanese Economic Review
Volume
54
Issue
2
First Page
229
Last Page
236
ISSN
1352-4739
Identifier
10.1111/1468-5876.t01-1-00256
Publisher
Wiley
Citation
Lee, Myoung-jae.
Exclusion Bias in Sample-Selection Model Estimators. (2003). Japanese Economic Review. 54, (2), 229-236.
Available at: https://ink.library.smu.edu.sg/soe_research/489
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/1468-5876.t01-1-00256