Monotonicity Conditions and Inequality Imputation for Sample Selection and Non-Response Problems
AbstractUnder a sample selection or non-response problem where a response variable y is observed only when a condition Î´=1 is met, the identified mean E(y|Î´=1) is not equal to the desired mean E(y). But the monotonicity condition E(y|Î´=1)â‰¤E(y|Î´=0) yields an informative bound E(y|Î´=1)â‰¤E(y), which is enough for certain inferences. For example, in a majority voting with Î´ being vote-turnout, it is enough to know if E(y)>0.5 or not, for which E(y|Î´=1)>0.5 is sufficient under the monotonicity. The main question is then whether the monotonicity condition is testable, and if not, when it is plausible. Answering to these queries, when there is a "proxy" variable z related to y but fully observed, we provide a test for the monotonicity; when z is not available, we provide primitive conditions and plausible models for the monotonicity. Going further, when both y and z are binary, bivariate monotonicities of the type P(y,z|Î´=1)â‰¤P(y,z|Î´=0) are considered, which can lead to sharper bounds for P(y). As an empirical example, a data set on the 1996 US presidential election is analyzed to see if the Republican candidate could have won had everybody voted, i.e., to see if P(y)>0.5 where y=1 is voting for the Republican candidate
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 93.
Date of creation: 11 Aug 2004
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sample selection; non-response; monotonicity; imputation; orthant dependence;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
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