This paper develops a sample selection model for fractional response variables, i.e., variables taking values in the [0, 1]-interval. It provides an extension of the Papke and Wooldridge (1996) fractional probit model to the case of non-random sample selectivity. The model differs from the...

Sample selection bias as a specification error This paper discusses the bias that results from using non-randomly selected samples to estimate behavioral relationships as an ordinary specification error or «omitted variables» bias. A simple consistent two stage estimator is considered that...

In this paper, we consider the problem of missing values of a continuous response variable that cannot be assumed to be missing at random. The example considered here is an analysis of pupil's subjective engagement at school using longitudinal survey data, where the engagement score from wave 3...

The objective of this paper is to explore the determinants to leave agriculture and change occupational sector. We adopt a 3-step multivariate probit where we control for selection bias at two stages in the decisions to work and, at a later stage, exit agriculture. The analysis is based on the...

Hausman (1978) developed a widely-used model specification test that has passed the test of time. The test is based on two estimators, one being consistent under the null hypothesis but inconsistent under the alternative, and the other being consistent under both the null and alternative...

A new and extensive panel of outward nonresource and resource FDI is used to investigate the effect of natural resources on the different components of FDI. Our main findings are as follows. First, for countries which were not a resource producer before, a resource discovery causes nonresource...

The concept of a consideration set has become a central concept in the study of consumer behavior. This paper shows that the common practice of estimating models using only the set of alternatives deemed to be in the set considered by a consumer will usually result in estimated parameters that...

This paper presents a model of vehicle choice and then empirically examines the risk posed by light trucks (sport-utility vehicles, vans, and pickups) to those that drive them and to other drivers, relative to the risk posed by cars. The paper examines both the relative risk of dying given a...

Purpose – The purpose of this paper is to introduce the special issue on “Disadvantaged workers in the labour market” and to draw some policy implications that are common to the studies included in the special issue. Design/methodology/approach – The paper introduces several econometric...