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Type 2 Tobit Sample Selection Models with Bayesian Additive Regression Trees

Eoghan O'Neill

arXiv 5 Feb 2025 · Econometrics

arXiv:2502.03600 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper introduces Type 2 Tobit Bayesian Additive Regression Trees (TOBART-2). BART can produce accurate individual-specific treatment effect estimates. However, in practice estimates are often biased by sample selection. We extend the Type 2 Tobit sample selection model to account for nonlinearities and model uncertainty by including sums of trees in both the selection and outcome equations. A Dirichlet Process Mixture distribution for the error terms allows for departure from the assumption of bivariate normally distributed errors. Soft trees and a Dirichlet prior on splitting probabilities improve modeling of smooth and sparse data generating processes. We include a simulation study and an application to the RAND Health Insurance Experiment data set.

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Most heavily cited references

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.

ReferenceIntensityMentionsSectionsMain text
1Iqbal, Ogundimu \ Rubio (2023) `Bayesian variable selection in sample selection models using spike-and-slab priors', arXiv preprint arXiv:2312.035380.84310460%
2Chib, Greenberg \ Jeliazkov (2009) `Estimation of semiparametric models in the presence of endogeneity and sample selection', Journal of Computational and Graphica…0.8435360%
3van Hasselt (2011) `Bayesian inference in a sample selection model', Journal of Econometrics 165(2), 221–2320.82352956%
4McCulloch, Sparapani, Logan \ Laud (2021) `Causal inference with the instrumental variable approach and bayesian nonparametric machine learning', arXiv preprint arXiv:210…0.8229356%
5Brewer \ Carlson (2024) `Addressing sample selection bias for machine learning methods', Journal of Applied Econometrics0.81115353%
6Chipman, George \ McCulloch (2010) `Bart: Bayesian additive regression trees', The Annals of Applied Statistics 4(1), 266–2980.79414450%
7George, Laud, Logan, McCulloch \ Sparapani (2019) Fully nonparametric bayesian additive regression trees, in `Topics in Identification, Limited Dependent Variables, Partial Obser…0.7636267%
8Conley, Hansen, McCulloch \ Rossi (2008) `A semi-parametric bayesian approach to the instrumental variable problem', Journal of Econometrics 144(1), 276–3050.7374350%
9van Hasselt (2005) Bayesian sampling algorithms for the sample selection and two-part models, in `Computing in Economics and Finance', Vol0.7374350%
10Ding (2014) `Bayesian robust inference of sample selection using selection-t models', Journal of Multivariate Analysis 124, 451–4640.72521738%

Showing the top 10 of 78 scored citations.