NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Correcting for Truncation Bias Caused by a Latent Truncation Variable

David E. Bloom, Mark R. Killingsworth

NBER Technical Working Paper No. 38
Issued in June 1984
NBER Program(s):   LS

We discuss estimation of the model Y[sub i] = X[sub i]b[sub y] + e[sub Yi] and T[sub i] =X[sub i]b[sub T] + e[sub Ti] when data on the continuous dependent variable Y and on the independent variables X are observed if the "truncation variable" T > 0 and when T is latent. This case is distinct from both (i) the "censored sample" case, in which Y data are available if T > 0, T is latent and X data are available for all observations, and (ii) the "observed truncation variable" case, in which both Y and X are observed if T > 0 and in which the actual value of T is observed whenever T > O. We derive a maximum-likelihood procedure for estimating this model and discuss identification and estimation.

download in pdf format
   (324 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/t0038

Published: Bloom, David E. and Mark R. Killingsworth. "Correcting for Truncation Bias Caused by a Latent Truncation Variable." Journal of Econometrics, Vol. 27 , No. 1, January 1985, pp.131-135.

Users who downloaded this paper also downloaded* these:
Heckman The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models
Hausman and Wise The Evaluation of Results from Truncated Samples: The New Jersey Income Maintenance Experiment
Beaulieu and Miron w3450 The Seasonal Cycle in U.S. Manufacturing
Hanushek, Rivkin, and Taylor w5548 Aggregation and the Estimated Effects of School Resources
Blau and Kahn The Gender Earnings Gap: Some International Evidence
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us