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Testing exclusion restrictions and additive separability in sample selection models

Huber, Martin ; Mellace, Giovanni

In: Empirical Economics, 2014, vol. 47, no. 1, p. 75-92

Testing exclusion restrictions and additive separability in sample selection models

Huber, Martin ; Mellace, Giovanni

In: Empirical economics, 2014, vol. 47, no. 1, p. 75-92

Standard sample selection models with non-randomly censored outcomes assume (i) an exclusion restriction (i.e., a variable affecting selection, but not the outcome) and (ii) additive separability of the errors in the selection process. This paper proposes tests for the joint satisfaction of these assumptions by applying the approach of Huber and Mellace (Testing instrument validity for LATE...