MEASURING THE UNIDENTIFIED PARAMETER OF THE EXTENDED ROY MODEL OF SELECTIVITY

Authors
VIJVERBERG WPM
Citation
Wpm. Vijverberg, MEASURING THE UNIDENTIFIED PARAMETER OF THE EXTENDED ROY MODEL OF SELECTIVITY, Journal of econometrics, 57(1-3), 1993, pp. 69-89
Citations number
31
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics,"Mathematical, Methods, Social Sciences
Journal title
Journal of econometrics → ACNP
ISSN journal
03044076
Volume
57
Issue
1-3
Year of publication
1993
Pages
69 - 89
Database
ISI
SICI code
0304-4076(1993)57:1-3<69:MTUPOT>2.0.ZU;2-3
Abstract
In the extended Roy model of selectivity, the correlation coefficient between the disturbance terms in the two equations that are subject to selectivity is treated in the current literature as an unidentified p arameter. This paper develops a method to produce a probabilistic stat ement about this parameter, which is of great interest for both theore tical and descriptive reasons. The method is illustrated with three ex amples drawn from published research.