Consistent Estimation in Pseudo Panels in the Presence of Selection Bias
Abstract: 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.
- Standort
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Deutsche Nationalbibliothek Frankfurt am Main
- Umfang
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Online-Ressource
- Sprache
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Englisch
- Erschienen in
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Consistent Estimation in Pseudo Panels in the Presence of Selection Bias ; volume:8 ; number:1 ; year:2014 ; extent:26
Economics / Journal articles. Journal articles ; 8, Heft 1 (2014) (gesamt 26)
- Urheber
- DOI
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10.5018/economics-ejournal.ja.2014-43
- URN
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urn:nbn:de:101:1-2412130939304.392582825462
- Rechteinformation
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Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Letzte Aktualisierung
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15.08.2025, 07:31 MESZ
Datenpartner
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Beteiligte
- Rodríiuez, Jhon James Mora
- Muro, Juan
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