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Estimating treatment effectiveness with sample selection

Author

Listed:
  • Robert Rosenman
  • Bidisha Mandal
  • Vidhura Tennekoon
  • Laura G. Hill

    () (School of Economic Sciences, Washington State University)

Abstract

We consider a situation where treatment outcome is observed after two stages of selection; first of participation into the treatment, then in completion of the treatment. Estimates were obtained using two methods. First, three different binary response selection models were estimated sequentially in multiple steps. Second, all three equations were estimated jointly. All methods produce similar parameter estimates. We find evidence of selection effects from completion to outcome that could bias parameter estimates of the outcome equation, but not from participation to outcome, indicating that correcting only for participation may be insufficient to avoid biased estimates in the outcome equation.

Suggested Citation

  • Robert Rosenman & Bidisha Mandal & Vidhura Tennekoon & Laura G. Hill, 2010. "Estimating treatment effectiveness with sample selection," Working Papers 2010-05, School of Economic Sciences, Washington State University.
  • Handle: RePEc:wsu:wpaper:rosenman-9
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    File URL: http://faculty.ses.wsu.edu/WorkingPapers/Rosenman/WP2010-5.pdf
    File Function: First version, 2010
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    Cited by:

    1. Henri Fraisse & Anne Muller, 2011. "Les commissions de surendettement des ménages : de l’objectif de négociation à la prévention de la rechute," Économie et Statistique, Programme National Persée, vol. 443(1), pages 3-27.

    More about this item

    Keywords

    selection bias; trivariate probit; bivariate probit; treatment effects;

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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