Estimating treatment effectiveness with sample selection

Robert Rosenman, Bidisha Mandal, Vidhura Tennekoon and Laura Hill ()
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Laura Hill: School of Economic Sciences, Washington State University

No 2010-05, Working Papers from School of Economic Sciences, Washington State University

Abstract: We consider a situation where treatment outcome is observed after two stages of selection; first of participation into the treatment, then in completion of the treatment. Estimates were obtained using two methods. First, three different binary response selection models were estimated sequentially in multiple steps. Second, all three equations were estimated jointly. All methods produce similar parameter estimates. We find evidence of selection effects from completion to outcome that could bias parameter estimates of the outcome equation, but not from participation to outcome, indicating that correcting only for participation may be insufficient to avoid biased estimates in the outcome equation.

Keywords: selection bias; trivariate probit; bivariate probit; treatment effects (search for similar items in EconPapers)
JEL-codes: C24 C25 C51 I10 I12 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010-04
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Citations: View citations in EconPapers (3)

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