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Simple tests for sample selection bias in censored and discrete choice models
Author(s) -
Vella F.
Publication year - 1992
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950070407
Subject(s) - econometrics , simple (philosophy) , selection (genetic algorithm) , test (biology) , mathematics , statistics , receipt , extension (predicate logic) , selection bias , moment (physics) , variable (mathematics) , discrete choice , sample (material) , censored regression model , regression analysis , computer science , artificial intelligence , paleontology , mathematical analysis , philosophy , physics , chemistry , epistemology , classical mechanics , chromatography , world wide web , biology , programming language
This paper presents two simple tests of sample selection bias for models where the primary equation of interest has a censored or discrete dependent variable. The first test is derived as a conditional moment test and can be implemented in a regression‐based framework. The second test is an extension of the testing procedures proposed by Heckman (1979) and Vella (1993) and is a t ‐test on a constructed variable in an auxiliary equation. The utility of the tests is illustrated in a model determining the receipt of work conditioned nonwage labour income over a subsample of working women.