On bias correction in the multivariate sample-selection model

C-Tier
Journal: Applied Economics
Year: 2005
Volume: 37
Issue: 21
Pages: 2459-2468

Authors (2)

Zhuo Chen (University of Georgia) Steven Yen (not in RePEc)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

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

Abstract

Heien and Wessells' two-step estimator for the multivariate sample-selection model has been used extensively during the past 15 years. A modified version of it, with slightly different selectivity regressors, has also appeared in the empirical literature. Both estimators are unfounded and generally do not correct for the sample selectivity bias as intended but have continued to gain popularity in empirical applications. The properties of the modified Heien-Wessells procedure are investigated in both the bivariate and multivariate contexts, and the conditions under which this estimator fails to correct for sample selectivity are examined. The theoretical properties are demonstrated with a simulated random sample.

Technical Details

RePEc Handle
repec:taf:applec:v:37:y:2005:i:21:p:2459-2468
Journal Field
General
Author Count
2
Added to Database
2026-01-25