HCinitial: Two-Step Method for Parameter Estimation of the Heckman Model
In ssmodels: Sample Selection Models

HCinitial

R Documentation

Two-Step Method for Parameter Estimation of the Heckman Model

Description

Estimates the parameters of the classic Heckman model via the two-step method.

Usage

HCinitial(selection, outcome, data = sys.frame(sys.parent()))

Arguments

`selection`	Selection equation.
`outcome`	Primary Regression Equation.
`data`	Database.

Details

Generally, the two-step method is very useful for finding initial values for the Likelihood Estimation method. In first step performs a probit analysis on a selection equation. The second step analyzes an outcome equation based on the first-step binary probit model.

Value

Returns a numerical vector with estimates of the parameters of the classical Heckman model using the two-step method

Examples

data(MEPS2001)
attach(MEPS2001)
selectEq <- dambexp ~ age + female + educ + blhisp + totchr + ins + income
outcomeEq <- lnambx ~ age + female + educ + blhisp + totchr + ins
HCinitial(selectEq,outcomeEq, data = MEPS2001)

ssmodels documentation built on Oct. 4, 2022, 5:06 p.m.