Econometric models with normal polychotomous selectivity

The polychotomous extension of the selectivity model of Heckman (1976) is derived. Unlike similar models proposed by Hay (1980) and Lee (1983), this generalization maintains the assumption of joint normality among the errors. In light of recent advances in the theory and estimation of the multinomia...

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Bibliographic Details
Published in:Economics letters 1985, Vol.19 (2), p.165-170
Main Author: Terza, Joseph V.
Format: Article
Language:English
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Summary:The polychotomous extension of the selectivity model of Heckman (1976) is derived. Unlike similar models proposed by Hay (1980) and Lee (1983), this generalization maintains the assumption of joint normality among the errors. In light of recent advances in the theory and estimation of the multinomial probit model, the present derivation is offered as an important first step toward the true generalization of the Heckman estimator.
ISSN:0165-1765
1873-7374
DOI:10.1016/0165-1765(85)90014-X