On the Effects of Misspecification Errors in Models with Generated Regressors.

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 1994
Volume: 56
Issue: 4
Pages: 441-55

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper considers the consistency and efficiency of two-step estimators of a structural equation when the auxiliary equation is misspecified. Underspecification generally leads to the two-step estimator and the estimator of the error variance being inconsistent. When the errors of the structural and auxiliary equations are uncorrelated, a two-step estimator based on an overspecified auxiliary model will generally lead to a loss of efficiency compared with the two-step estimator based on a correctly specified auxiliary model. The impact of underspecifying and overspecifying the auxiliary equation used to generate initial parameter estimates for Heckman's two-step estimator of models with sample selection is analyzed. Copyright 1994 by Blackwell Publishing Ltd

Technical Details

RePEc Handle
repec:bla:obuest:v:56:y:1994:i:4:p:441-55
Journal Field
General
Author Count
2
Added to Database
2026-01-26