Collinearity and Two-Step Estimation of Sample Selection Models: Problems, Origins, and Remedies

This file is part of IDEAS, which uses RePEc data

Collinearity and Two-Step Estimation of Sample Selection Models: Problems, Origins, and Remedies

Author Info

Siu Fai Leung
Shihti Yu

Additional information is available for the following registered author(s):

Siu Fai Leung

Abstract

This paper investigates the origins of the collinearity problems encountered in the two-step estimation method for sample selection models. The analysis reveals several critical misconceptions and deficiencies in the literature. Remedies to the collinearity problems are proposed and evaluated. Monte Carlo experiments as well as an empirical example based on Mroz‘s (1987) data are used to illustrate the practical relevance and importance of the analysis.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info
Article provided by Springer in its journal Computational Economics.

Volume (Year): 15 (2000)
Issue (Month): 3 (June)
Pages: 173-199
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:compec:v:15:y:2000:i:3:p:173-199

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100248

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Other versions of this item:

Paper
- Leung, S.F. & Yu, S., 1996. "Collinearity and Two-Step Estimation of Sample Selection Models: Problems, Origins and Remedies," RCER Working Papers 419, University of Rochester - Center for Economic Research (RCER).

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

M. Genius & Elisabetta Strazzera, 2003. "The copula approach of sampling selection modelling: an application to the recreational value of forests," Working Paper CRENoS 200308, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
Elisabetta Strazzera & Margarita Genius, 2004. "The Copula Approach to Sample Selection Modelling: An Application to the Recreational Value of Forests," Working Papers 2004.73, Fondazione Eni Enrico Mattei. [Downloadable!]
Erika Spissu & Abdul Pinjari & Ram Pendyala & Chandra Bhat, 2009. "A copula-based joint multinomial discrete–continuous model of vehicle type choice and miles of travel," Transportation, Springer, vol. 36(4), pages 403-422, July. [Downloadable!] (restricted)
Clatworthy, Mark A & Makepeace, Gerald H & Peel, Michael J., 2007. "Further Evidence on Auditor Selection Bias and The Big 4 Premium," Cardiff Accounting and Finance Working Papers A2007/6, Cardiff University, Cardiff Business School, Accounting and Finance Section. [Downloadable!]
Elisabetta Strazzera & Margarita Genius & Riccardo Scarpa & George Hutchinson, 2003. "The Effect of Protest Votes on the Estimates of WTP for Use Values of Recreational Sites," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(4), pages 461-476, August. [Downloadable!] (restricted)

Statistics

Access and download statistics

Did you know? All bibliographic data on IDEAS has been put in the public domain by the publishers.

This page was last updated on 2009-12-10.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.