Calculating marginal effects in models for zero expenditures in household budgets using a Heckman-type correction

C-Tier
Journal: Applied Economics
Year: 1997
Volume: 29
Issue: 10
Pages: 1311-1316

Authors (3)

Atanu Saha (not in RePEc) Oral Capps (Texas A&M University) Patrick Byrne (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

Abstract

Using the Heckamn approach, either in single-equation or multi-equation settings, general expressions are derived for calculating marginal effects and elasticities. In the conventional calculation of marginal effects, terms related to the change in the inverse of Mills ratio are omitted. Using data from the 19877-88 Nationwide Food Consumption Survey, we calculate income and household size elasticities for 12 food commodities. We compare the magnitudes and signs of the elasticities using the conventional expressions of marginal effects and our derived expressions. Bottomline, sizeable differences, especially in single-equation applications, can occur in calculating marginal effects if one fails to account for changes in the inverse of the Mills ratio.

Technical Details

RePEc Handle
repec:taf:applec:v:29:y:1997:i:10:p:1311-1316
Journal Field
General
Author Count
3
Added to Database
2026-01-25