Testing Exclusion Restrictions at Infinity in the Semiparametric Selection Model

23 Pages Posted: 24 Mar 2006

See all articles by Bruno Crepon

Bruno Crepon

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); IZA Institute of Labor Economics

Date Written: March 2006

Abstract

The control function in the semiparametric selection model is zero at infinity. This paper proposes additional restrictions of the same type and shows how to use them to test assumed exclusion restrictions necessary for root N estimation of the model. The test is based on the estimated control function and its derivative and takes the form of a GMM step that occurs at infinity. Alternative estimation of the parameters are proposed which do not rely on exclusion restrictions, extending available results for the estimation of the intercept at infinity. Simulations are implemented.

Keywords: policy evaluation, sample selection, exclusion restriction, semi parametric

JEL Classification: C14, C31, C34

Suggested Citation

Crepon, Bruno, Testing Exclusion Restrictions at Infinity in the Semiparametric Selection Model (March 2006). IZA Discussion Paper No. 2035. Available at SSRN: https://ssrn.com/abstract=892834

Bruno Crepon (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )

92245 Malakoff Cedex
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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