Alexander Klein, Guy Tchuente
arXiv 14 Sep 2020 · Econometrics · publishedEconometrics Journal (2023) · 1 citations (OpenAlex)
arXiv:2009.06570 · PDF · DOI · OpenAlex · Extracted main text
This paper derives identification, estimation, and inference results using spatial differencing in sample selection models with unobserved heterogeneity. We show that under the assumption of smooth changes across space of the unobserved sub-location specific heterogeneities and inverse Mills ratio, key parameters of a sample selection model are identified. The smoothness of the sub-location specific heterogeneities implies a correlation in the outcomes. We assume that the correlation is restricted within a location or cluster and derive asymptotic results showing that as the number of independent clusters increases, the estimators are consistent and asymptotically normal. We also propose a formula for standard error estimation. A Monte-Carlo experiment illustrates the small sample properties of our estimator. The application of our procedure to estimate the determinants of the municipality tax rate in Finland shows the importance of accounting for unobserved heterogeneity.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Duranton, Gobillon, and Overman (2011) Assessing the Effects of Local Taxation using Microgeographic Data | 0.874 | 5 | 2 | 100% |
| 2 | Hansen and Lee (2019) Asymptotic theory for clustered samples | 0.811 | 4 | 2 | 100% |
| 3 | Black (1999) Do Better Schools Matter? Parental Valuation of Elementary Education | 0.737 | 3 | 2 | 100% |
| 4 | Holmes (1998) The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders | 0.737 | 3 | 2 | 100% |
| 5 | Kyriazidou (1997) Estimation of a Panel Data Sample Selection Model | 0.737 | 3 | 2 | 100% |
| 6 | Rochina-Barrachina (1999) A new estimator for panel data sample selection models | 0.644 | 2 | 2 | 100% |
| 7 | Wooldridge (2010) Econometric analysis of cross section and panel data | 0.644 | 2 | 2 | 100% |
| 8 | Todd and Wolpin (2003) On the specification and estimation of the production function for cognitive achievement | 0.511 | 2 | 1 | 100% |
| 9 | Ashworth and Heyndels (1997) Politicians' preferences on local tax rates: an empirical analysis | 0.405 | 1 | 1 | 100% |
| 10 | Baskaran (2014) Identifying local tax mimicking with administrative borders and a policy reform | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 31 scored citations.