Hello there
This is probably a very stupid question but in the STATA help manual,
nshazard(newvar) and mills(newvar) are synonyms; either will create a new
variable containing the nonselection hazard -- what Heckman (1979) referred
to as the inverse of the Mills' ratio -- from the selection equation. The
nonselection hazard is computed from the estimated parameters of the
selection equation.
So why would I have to calculate the Inverse Mills ratio instead of just
using the Mills Lamda value reported with the regression results?
Many Thanks
Seema
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