Record Details

Consistent Estimation in Pseudo Panels in the Presence of Selection Bias - Article [Dataset]

Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)

View Archive Info
 
 
Field Value
 
Title Consistent Estimation in Pseudo Panels in the Presence of Selection Bias - Article [Dataset]
 
Identifier https://doi.org/10.7910/DVN/28113
 
Creator John James Mora Rodriguez
Juan Muro
 
Publisher Harvard Dataverse
 
Description In the presence of selection bias the traditional estimators for pseudo panel data models are inconsistent. This paper discusses a method to achieve consistency in static linear pseudo panels in the presence of selection bias and a testing procedure for sample selection bias. The authors' approach uses a bias correction term proportional to the inverse Mills ratio with argument equal to the normit of a consistent estimation of the conditional probability of being observed given cohort membership. Monte Carlo analysis shows the test does not reject the null for fixed T at a 5% significance level in finite samples. As a side effect the authors utilize the enlarged pseudo panel to provide a GMM consistent estimation of the pseudo panel parameters under rejection of the null and apply the procedure to estimate the rate of return to education in Colombia.
 
Subject Repeated cross-section models
Selectivity bias testing
Returns to education
 
Date 2014
 
Type Aggregate data