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Summary The problem of specification errors in sample selection models has received considerable attention both theoretically and empirically. Originally proposed in Heckman (1979) within a fully parametric context, Ahn and Powell (1993) have proposed a semiparametric alternative that is claimed to be asymptotically robust against several misspecification errors. However, very few is known about the...
This paper deals with the problem of choosing the optimum criterion to select the best of a set of nested binary choice models. Special attention is given to the procedures which are derived in a decision-theoretic framework, called model selection criteria (MSC). We propose a new criterion, which we call C2, whose theoretical behaviour is compared with that of the AIC and SBIC criteria. The result...
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