IDEAS home Printed from https://ideas.repec.org/a/spr/jecfin/v23y1999i1p64-77.html
   My bibliography  Save this article

Self-selection bias and cost-of-living estimates

Author

Listed:
  • Michael Raper

Abstract

Due to continued interest in geographic living-cost differentials, some researchers have used data from the ACCRA Cost of Living Index. This paper explores further the potential for using ACCRA data for cost-of-living research. In particular, it investigates the possibility of self-selection bias affecting OLS estimates using ACCRA data. The findings indicate that self-selection bias is a concern that researchers using ACCRA data should be aware of. Results using Heckman’s two-step procedure to estimate a cost-of-living model indicate promise for using ACCRA data to update and expand upon previous cost-of-living research. Copyright Springer 1999

Suggested Citation

  • Michael Raper, 1999. "Self-selection bias and cost-of-living estimates," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 23(1), pages 64-77, March.
    • Handle: RePEc:spr:jecfin:v:23:y:1999:i:1:p:64-77
    DOI: 10.1007/BF02752688
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02752688
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02752688?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    3. Oded Izraeli, 1977. "Differentials in Nominal Wages and Prices Between Cities," Urban Studies, Urban Studies Journal Limited, vol. 14(3), pages 275-290, October.
    4. Rizzo, John A. & Blumenthal, David, 1994. "Physician labor supply: Do income effects matter?," Journal of Health Economics, Elsevier, vol. 13(4), pages 433-453.
    5. Richard J. Cebula, 1980. "Determinants of Geographic Living-Cost Differentials in the United States: An Empirical Note," Land Economics, University of Wisconsin Press, vol. 56(4), pages 477-481.
    6. Walter W. McMahon, 1991. "Geographical Cost of Living Differences: An Update," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 426-450, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elsie Echeverri‐Carroll & Sofia G. Ayala, 2009. "Wage differentials and the spatial concentration of high‐technology industries," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 623-641, August.
    2. Mark D. Brenner & Stephanie Luce, 2003. "Evaluation of a Proposal to Reinstate the New York Stock Transfer Tax," Research Reports rr8, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Christina Daly & Keith R. Phillips, 2009. "Improving the ACCRA U.S. regional cost of living index," Working Papers 0902, Federal Reserve Bank of Dallas.
    4. Anthony Jerome Anderson & Michael Stuart Long, 2017. "Explaining the On-The-Run Puzzle with Corporate Bonds," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-36, June.
    5. Lenard, Mary Jane & Petruska, Karin A. & Alam, Pervaiz & Yu, Bing, 2016. "Internal control weaknesses and evidence of real activities manipulation," Advances in accounting, Elsevier, vol. 33(C), pages 47-58.
    6. Richard J. Cebula & John Connaughton & Caroline Swartz, 2018. "An Empirical Analysis of the Impact of the Three Labor Market Freedom Indices and Occupational Licensing on Interstate Living-Cost Differentials," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 33(Fall 2018), pages 49-62.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael L. Walden, 1997. "How Much Income Variation "Really" Exists Within a State?," The Review of Regional Studies, Southern Regional Science Association, vol. 27(3), pages 237-250, Winter.
    2. Takashi Yamagata & Chris Orme, 2005. "On Testing Sample Selection Bias Under the Multicollinearity Problem," Econometric Reviews, Taylor & Francis Journals, vol. 24(4), pages 467-481.
    3. VILHUBERT, Lars, 1999. "Wage Flexibility and Contract Structure in Germany," Cahiers de recherche 9905, Universite de Montreal, Departement de sciences economiques.
    4. Yasser Razak Hussain & Pranab Mukhopadhyay, 2023. "How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion," SAGE Open, , vol. 13(4), pages 21582440231, December.
    5. Richard J. Cebula & Christopher M. Duquette & G. Jason Jolley, 2023. "An exploratory study of the impact of tax freedom on geographic living‐cost differentials," American Journal of Economics and Sociology, Wiley Blackwell, vol. 82(4), pages 365-375, July.
    6. Montes-Rojas, G., 2008. "Robust misspecification tests for the Heckman’s two-step estimator," Working Papers 08/01, Department of Economics, City University London.
    7. Kenneth Y. Chay & James L. Powell, 2001. "Semiparametric Censored Regression Models," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 29-42, Fall.
    8. Cristina Barceló, 2006. "Housing tenure and labour mobility: a comparison across European countries," Working Papers 0603, Banco de España.
    9. Martin Huber & Giovanni Mellace, 2014. "Testing exclusion restrictions and additive separability in sample selection models," Empirical Economics, Springer, vol. 47(1), pages 75-92, August.
    10. Angrist, Joshua D., 1997. "Conditional independence in sample selection models," Economics Letters, Elsevier, vol. 54(2), pages 103-112, February.
    11. Elisa‐Rose Birch, 2005. "Studies of the Labour Supply of Australian Women: What Have We Learned?," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 65-84, March.
    12. repec:cty:dpaper:10.1080/07474938.2011.534035 is not listed on IDEAS
    13. Lincove, Jane Arnold, 2009. "Determinants of schooling for boys and girls in Nigeria under a policy of free primary education," Economics of Education Review, Elsevier, vol. 28(4), pages 474-484, August.
    14. Pigini Claudia, 2015. "Bivariate Non-Normality in the Sample Selection Model," Journal of Econometric Methods, De Gruyter, vol. 4(1), pages 1-22, January.
    15. Richard J. Cebula & Michael Toma, 2010. "Determinants of interstate differentials in the cost of housing, 2006," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 153-157, January.
    16. Emmanuel O. Ogundimu & Jane L. Hutton, 2016. "A Sample Selection Model with Skew-normal Distribution," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 43(1), pages 172-190, March.
    17. repec:rre:publsh:v:34:y:2004:i:1:p:112-19 is not listed on IDEAS
    18. Peichl, Andreas & Schneider, Hilmar & Siegloch, Sebastian, 2010. "Documentation IZA?MOD: The IZA Policy SImulation MODel," IZA Discussion Papers 4865, Institute of Labor Economics (IZA).
    19. Montes-Rojas, G., 2008. "Robust misspecification tests for the Heckman’s two-step estimator," Working Papers 1479, Department of Economics, City University London.
    20. Geir Godager & Hilde Lurås, 2009. "Dual job holding general practitioners: the effect of patient shortage," Health Economics, John Wiley & Sons, Ltd., vol. 18(10), pages 1133-1145, October.
    21. Maria Karlsson & Thomas Laitila, 2014. "Finite mixture modeling of censored regression models," Statistical Papers, Springer, vol. 55(3), pages 627-642, August.
    22. Cuesta, J.D. & Ponce, J. & León, M., 2004. "Simulating progressive social transfers : gas subsidies and solidarity bonds in Ecuador," ISS Working Papers - General Series 19155, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecfin:v:23:y:1999:i:1:p:64-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.