IDEAS home Printed from https://ideas.repec.org/a/taf/emetrv/v29y2010i1p1-19.html
   My bibliography  Save this article

Gamma Unobserved Heterogeneity and Duration Bias

Author

Listed:
  • Pål Børing

Abstract

Røed et al. (1999) demonstrate that the standard result of known negative duration bias does not necessarily hold in a two-state mixed proportional hazard (MPH) model. We show that the duration bias is still ambiguous in a MPH model with a multivariate gamma distribution. A discrete time two-state version of our MPH model is developed to analyze the duration of higher education. The estimation results show that we cannot reject the hypothesis that the two unobserved heterogeneity variables are uncorrelated. Accepting this hypothesis implies that the standard result holds in our analysis.

Suggested Citation

  • Pål Børing, 2010. "Gamma Unobserved Heterogeneity and Duration Bias," Econometric Reviews, Taylor & Francis Journals, vol. 29(1), pages 1-19.
  • Handle: RePEc:taf:emetrv:v:29:y:2010:i:1:p:1-19 DOI: 10.1080/07474930903323822
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/07474930903323822
    Download Restriction: Access to full text is restricted to subscribers.

    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. Nyborg, Karine & Telle, Kjetil, 2004. "The role of warnings in regulation: keeping control with less punishment," Journal of Public Economics, Elsevier, vol. 88(12), pages 2801-2816, December.
    2. Knut Roed & Oddbjorn Raaum & Harald Goldstein, 1999. "Does unemployment cause unemployment? Micro evidence from Norway," Applied Economics, Taylor & Francis Journals, vol. 31(10), pages 1207-1218.
    3. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-956, July.
    4. Lofgren, Curt & Ohlsson, Henry, 1999. "What determines when undergraduates complete their theses? Evidence from two economics departments," Economics of Education Review, Elsevier, vol. 18(1), pages 79-88, February.
    Full references (including those not matched with items on IDEAS)

    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:taf:emetrv:v:29:y:2010:i:1:p:1-19. 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: (). General contact details of provider: http://www.tandfonline.com/LECR20 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.