Bias correction for within-group estimation of panel data models with fixed effects and sample selection

C-Tier
Journal: Economics Letters
Year: 2022
Volume: 220
Issue: C

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

For linear panel data models with fixed effects and sample selection, we correct for selectivity bias in the within-group estimator. The proposed procedure is equivalent to a pooled weighted least squares based on pairwise differences augmented with correction terms. A computationally affordable method of estimating nuisance temporal correlation parameters in the selection equation errors is also proposed. Analytic standard errors are derived for the multi-step estimator. Our method is easier to implement and performs well in comparison to the minimum distance approach according to simulations.

Technical Details

RePEc Handle
repec:eee:ecolet:v:220:y:2022:i:c:s0165176522003561
Journal Field
General
Author Count
2
Added to Database
2026-01-25