Treatment effects in sample selection models and their nonparametric estimation
In a sample-selection model with the ‘selection’ variable Q and the ‘outcome’ variable Y∗, Y∗ is observed only when Q=1. For a treatment D affecting both Q and Y∗, three effects are of interest: ‘participation’ (i.e., the selection) effect of D on Q, ‘visible performance’ (i.e., the observed outcome) effect of D on Y≡QY∗, and ‘invisible performance’ (i.e., the latent outcome) effect of D on Y∗. This paper shows the conditions under which the three effects are identified, respectively, by the three corresponding mean differences of Q, Y, and Y|Q=1 (i.e., Y∗|Q=1) across the control (D=0) and treatment (D=1) groups. Our nonparametric estimators for those effects adopt a two-sample framework and have several advantages over the usual matching methods. First, there is no need to select the number of matched observations. Second, the asymptotic distribution is easily obtained. Third, over-sampling the control/treatment group is allowed. Fourth, there is a built-in mechanism that takes into account the ‘non-overlapping support problem’, which the usual matching deals with by choosing a ‘caliper’. Fifth, a sensitivity analysis to gauge the presence of unobserved confounders is available. A simulation study is conducted to compare the proposed methods with matching methods, and a real data illustration is provided.
If you experience problems downloading a file, check if you have the proper application to view it first. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, 01.
- David Madden, 2006.
"Sample Selection Versus Two-Part Models Revisited: the Case of Female Smoking and Drinking,"
Health, Econometrics and Data Group (HEDG) Working Papers
06/12, HEDG, c/o Department of Economics, University of York.
- Madden, David, 2008. "Sample selection versus two-part models revisited: The case of female smoking and drinking," Journal of Health Economics, Elsevier, vol. 27(2), pages 300-307, March.
- David (David Patrick) Madden, 2006. "Sample selection versus two-part models revisited : the case of female smoking and drinking," Working Papers 200604, School of Economics, University College Dublin.
- Madden, David, 2006. "Sample Selection Versus Two-Part Models Revisited: The Case of Female Smoking and Drinking," Papers HRBWP23, Economic and Social Research Institute (ESRI).
- Curt Wells, 2003. "Retesting Fair's (1978) model on infidelity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(2), pages 237-239.
- QI Li & Jeff Racine, 2004. "Predictor relevance and extramarital affairs," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 533-535.
- Myoung-Jae Lee, 2004. "Selection correction and sensitivity analysis for ordered treatment effect on count response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 323-337.
- Imbens, Guido W & Angrist, Joshua D, 1994.
"Identification and Estimation of Local Average Treatment Effects,"
Econometric Society, vol. 62(2), pages 467-75, March.
- Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
- Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
- Racine, Jeff & Li, Qi, 2004. "Nonparametric estimation of regression functions with both categorical and continuous data," Journal of Econometrics, Elsevier, vol. 119(1), pages 99-130, March.
- Alberto Abadie & Joshua Angrist & Guido Imbens, 2002.
"Instrumental Variables Estimates of the Effect of Subsidized Training on the Quantiles of Trainee Earnings,"
Econometric Society, vol. 70(1), pages 91-117, January.
- Alberto Abadie & Joshua Angrist & Guido Imbens, 1999. "Instrumental Variables Estimates of the Effect of Subsidized Training on the Quantiles of Trainee Earnings," Working papers 99-16, Massachusetts Institute of Technology (MIT), Department of Economics.
- Myoung-jae Lee, 2000. "Median treatment effect in randomized trials," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 62(3), pages 595-604.
- Ray C. Fair, 1976.
"A Theory of Extramarital Affairs,"
Cowles Foundation Discussion Papers
436, Cowles Foundation for Research in Economics, Yale University.
- Lee, Myoung-jae, 2005. "Micro-Econometrics for Policy, Program and Treatment Effects," OUP Catalogue, Oxford University Press, number 9780199267699, May.
- Myoung Lee & Sang Lee, 2009.
"Sensitivity analysis of job-training effects on reemployment for Korean women,"
Springer, vol. 36(1), pages 81-107, February.
- Myoung-jae Lee & Sang-jun Lee, 2007. "Sensitivity Analysis Of Job-Training Effects On Reemployment For Korean Women," Discussion Paper Series 0720, Institute of Economic Research, Korea University.
- McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
- Leung, Siu Fai & Yu, Shihti, 1996.
"On the choice between sample selection and two-part models,"
Journal of Econometrics,
Elsevier, vol. 72(1-2), pages 197-229.
- Leung, S.F. & Yu, S., 1992. "On the Choice Between Sample Selection and Two-Part Models," RCER Working Papers 337, University of Rochester - Center for Economic Research (RCER).
- Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, june. pag.
- Ahn, Hyungtaik & Powell, James L., 1993. "Semiparametric estimation of censored selection models with a nonparametric selection mechanism," Journal of Econometrics, Elsevier, vol. 58(1-2), pages 3-29, July.
When requesting a correction, please mention this item's handle: RePEc:eee:econom:v:167:y:2012:i:2:p:317-329. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.