EconPapers    
Economics at your fingertips  
 

When Outcome Heterogeneously Matters for Selection – A Generalized Selection Correction Estimator

Arndt Reichert and Harald Tauchmann

No 372, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: The classical Heckman (1976, 1979) selection correction estimator (heckit) is misspecified and inconsistent if an interaction of the outcome variable and an explanatory variable matters for selection. To address this specification problem, a full information maximum likelihood estimator and a simple two-step estimator are developed. Monte-Carlo simulations illustrate that the bias of the ordinary heckit estimator is removed by these generalized estimation procedures. Along with OLS and the ordinary heckit procedure, we apply these estimators to data from a randomized trial that evaluates the effectiveness of financial incentives for weight loss among the obese. Estimation results indicate that the choice of the estimation procedure clearly matters.

Keywords: selection bias; interaction; heterogeneity; generalized estimator (search for similar items in EconPapers)
JEL-codes: C24 C93 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/67141/1/730745473.pdf (application/pdf)

Related works:
Journal Article: When outcome heterogeneously matters for selection: a generalized selection correction estimator (2014) Downloads
Journal Article: When outcome heterogeneously matters for selection: a generalized selection correction estimator (2014) Downloads
Working Paper: When Outcome Heterogeneously matters for Selection: a Generalized Selection Correction Estimator (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:372

DOI: 10.4419/86788427

Access Statistics for this paper

More papers in Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2025-03-22
Handle: RePEc:zbw:rwirep:372