Spatial Differencing for Sample Selection Models

10 Pages Posted: 28 Nov 2016 Last revised: 14 Dec 2016

See all articles by Alexander Klein

Alexander Klein

University of Kent - Canterbury Campus

Guy Tchuente

University of Kent

Date Written: November 1, 2016

Abstract

This paper uses spatial differencing to estimate parameters in sample selection models with unobserved heterogeneity. We show that under the assumption of smooth changes across the space of unobserved site-specific heterogeneity and selection probability, key parameters of a sample selection model are identified. A simple estimation procedure is proposed and the formula for the estimator of the standard error is derived.

Keywords: Sample selection, Spatial difference, Instrumental variable

JEL Classification: C13, C31

Suggested Citation

Klein, Alexander and Tchuente, Guy, Spatial Differencing for Sample Selection Models (November 1, 2016). Available at SSRN: https://ssrn.com/abstract=2875739 or http://dx.doi.org/10.2139/ssrn.2875739

Alexander Klein

University of Kent - Canterbury Campus ( email )

Keynes College
Canterbury, Kent CT2 7NP
United Kingdom

Guy Tchuente (Contact Author)

University of Kent ( email )

Keynes College, University of Kent
Canterbury, Kent CT2 7NP
United Kingdom

HOME PAGE: http://https://www.kent.ac.uk/economics/staff/profiles/guy-tchuente.html

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