Dear statalist,
How can endogeneity in Heckman selection model handled?
My dependent variable is sells value, and it is observed only if the household sold its product.
I want to include non farm income as explanatory variable in the sells equation.However, given that income is a function of sales proceeds, household income can be likely endogenous. So how can this be handeled or instrumented in STATA.
Thanks for your time and valuable comments.
Regards,
Sami
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