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st: Heckman


From   Jan Wynen <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: Heckman
Date   Thu, 4 Oct 2012 14:21:44 +0000

Dear,

I am trying to run the following Heckman procedure whereby;

I have following selection equation:

z= x1+x2+x3 +v

whereby v is the error term

and following structural equation:

y=x1+x2++z1+z2+z3+e

whereby e is the error term

z1, z2 and z3 are variables that affect only y (structural equation) and not z (selection). They are only observed when z=1.

Is this a good approach? Or will z1, z2 and z3 be endogenous (will they not be independent of the error term of the selection equation)?

Any help would be much appreciated!

Best,

Jan 



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