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  • Akay, Alpaslan, 1975, et al. (author)
  • Second Order Approximation for the Average Marginal Effect of Heckman's Two Step Procedure
  • 2006
  • Reports (other academic/artistic)abstract
    • In this paper we discuss the differences between the average marginal effect and the marginal effect of the average individual in sample selection models, estimated by Heckman's two step procedure. We show that the bias that emerges as a consequence of interchanging them, could be very signifcant, even in the limit. We suggest a computationally cheap approximation method, which corrects the bias in a large extent. We illustrate the implications of our method with an empirical application of earnings assimilation and a small Monte Carlo simulation.
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Type of publication
reports (1)
Type of content
other academic/artistic (1)
Author/Editor
Akay, Alpaslan, 1975 (1)
Tsakas, Elias, 1979 (1)
University
University of Gothenburg (1)
Language
English (1)
Research subject (UKÄ/SCB)
Social Sciences (1)
Year
2006 (1)

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