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Re: st: sample selection bias: rho and wald test


From   Maarten buis <[email protected]>
To   [email protected]
Subject   Re: st: sample selection bias: rho and wald test
Date   Mon, 7 Jun 2010 08:43:26 -0700 (PDT)

--- On Mon, 7/6/10, [email protected] wrote:
> I have a doubt related to the heckprob command. The estimated
> coefficient for rho is not statistically significant from 0,
> which I think suggests that there is not a selection bias.

I guess that this statement refers to the Wald test (the test
that is reported after each coefficient).

> However, the wald test reports that I should reject
> the null hypothesis that the equations are independent. 

I guess here you mean Likelihood ratio test, The test reported
in the line labeled: "LR test of indep. eqns. (rho = 0):".

Asymptotically the two should be the same, but in finite
samples the two are different. Often people prefer the
likelihood ratio test over the Wald test.

> The obtained rho lies outside the -1, +1 range. 

I guess that you mean the obtained /athrho, and not the
rho. Rho will always be within the -1 to 1 range, /athrho,
the Fisher's z transformation of rho, can be with the 
-infinity to +infinity range.

-- Maarten

--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany

http://www.maartenbuis.nl
--------------------------


      

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