The Heckman Correction for Sample Selection and Its Critique - A Short Survey
Journal
Journal of Economic Surveys
ISSN
0950-0804
ISSN-Digital
1467-6419
Type
journal article
Date Issued
2000-02-01
Author(s)
Abstract
not available in German This paper gives a short overview of Monte Carlo studies on the usefulness of Heckman's (1976, 1979) two-step estimator for estimating a selection model. It shows that exploratory work to check for collinearity problems is strongly recommended before deciding on which estimator to apply. In the absence of collinearity problems, the full-information maximum likelihood estimator is preferable to the limited-information two- step method of Heckman, although the latter also gives reasonable results. If, however, collinearity problems prevail, subsample OLS (or the Two- Part Model) is the most robust amongst the simple-to-calculate estimators. Journal of Economic Surveys
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Publisher
Wiley-Blackwell
Publisher place
Oxford
Volume
14
Number
1
Start page
53
End page
68
Pages
16
Subject(s)
Division(s)
Eprints ID
15969