Two-part models are robust to endogenous selection

David Drukker

Economics Letters, 2017, vol. 152, issue C, 71-72

Abstract: This note shows that the two-part model (TPM) can be used to estimate conditional and population-averaged effects of exogenous covariates when there is endogenous selection between the two parts. Much like estimating an average treatment effect on the treated, the TPM estimator only needs estimates of parameters that are recoverable from the observable data to estimate covariate effects. The TPM estimator is consistent for the counter factual of interest when selection between the parts is endogenous because the unobservable parameter is multiplied by zero.

Keywords: Two-part model; Endogeneity; Counter-factual inference endogenous treatment effect (search for similar items in EconPapers)
JEL-codes: C1 C4 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:152:y:2017:i:c:p:71-72

DOI: 10.1016/j.econlet.2017.01.004

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