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st: Re: endogeneity in heckman selection model


From   "Rao, James" <James.Rao@agr.uni-goettingen.de>
To   <statalist@hsphsun2.harvard.edu>
Subject   st: Re: endogeneity in heckman selection model
Date   Tue, 6 Apr 2010 17:53:47 +0200

Dear Statalisters,

I am estimating a labor demand equation that is "incidentally truncated" in
the words of W. H. Green (2006), since demand for hired labor is only
observed for those who actually hire labor. However, I am more interested in
the effect of a treatment variable on labor demand and I suspect that the
same treatment variable also has an effect on the selection equation -
determining whether or not one uses hired labor.  Therefore I end up with the
usual Heckman selection model but with a potentially endogenous variable in
both the selection and the labor demand equation. Could there be an approach
that can allow me to handle the endogeneity problem in this scenario.

==================================================
Rao E.O. James (Msc)
Research Associate/PhD Student

Department of Agricultural Economics and Rural Development
Georg-August University of Göttingen
Platz der Gottinger Sieben 5
37073 Göttingen, Germany.
 
Tell:+49-551-394443 (Office)
E-mail: jimrao2@yahoo.co.uk;  James.Rao@agr.uni-goettingen.de

Courage is not the absence of fear but the triumph over it ... so fear not to
fear ... but strive to overcome fear!



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