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st: propensity score and mills ratio


From   "francesca.modena" <francesca.modena@email.unitn.it>
To   <statalist@hsphsun2.harvard.edu>
Subject   st: propensity score and mills ratio
Date   Tue, 28 Oct 2008 12:39:51 +0100

Dear all,
This is a classical problem of treatment effect.

I have two outcomes: 
Y1i: the outcome of unit i if i were exposed to the treatment (T=1)
Y0i: the outcome of unit i if i were not exposed to the treatment (T=0)

I want to regress Y1i on a set of characteristics Z. OLS regression of Y1i
on Z can be biased because of sample selection problem. 

Let us assume that the probability of being exposed to the treatment can be
described by a probit equation 

Ti = alpha*X + error




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