Sample selection bias as a speciation error
Publication Source
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Econometrica
Journal article
Metadata
Region
The Americas
Economy status
High-income economies
Abstract
This paper discusses the bias that results from using nonrandomly selected samples to estimate behavioral relationships as an ordinary specification error or “omitted variables” bias. A simple consistent two stage estimator is considered that enables analysts to utilize simple regression methods to estimate behavioral functions by least squares methods. The asymptotic distribution of the estimator is derived.