The paper reviews four approaches (substitution (SUB), control function (CF), system reduced form (SRF) and artificial instrumental regressor (AIR)) dealing with endogenous regressors in censored response models, and compares them through a simulation. Based on mean-squared-error type criteria,...

This paper reviews six approaches to binary response (y₁) structural forms with an endogenous regressor y₂: (i) the two-stage least squares estimator-like substitution approach, (ii) the control function approach, (iii) the system reduced-form approach, (iv) the artificial instrumental regressor...

In a sample-selection model with the ‘selection’ variable Q and the ‘outcome’ variable Y∗, Y∗ is observed only when Q=1. For a treatment D affecting both Q and Y∗, three effects are of interest: ‘participation’ (i.e., the selection) effect of D on Q, ‘visible performance’...

This paper proposes to reexamine the trade effect of GATT/WTO based on non-parametric econometric techniques. Our estimation framework uses the simplest gravity model that explains bilateral trade volumes with country sizes and trade resistance, without imposing parametric assumptions typically...

We analyse male "survival duration after hospitalization" following an acute myocardial infarction with a large ("N"=11024) Finnish data set to find the best performing hospital district (and to disseminate its treatment protocol). This is a multiple-treatment problem with 21 treatments (i.e. 21...