Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Spatial Differencing for Sample Selection Models with Unobserved
  Heterogeneity   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.

23
The categories of this paper are: solv-int
28
The categories of this paper are: alg-geom
0
The categories of this paper are: hep-ph
1
The categories of this paper are: cs
32
The categories of this paper are: atom-ph
13
The categories of this paper are: quant-ph
37
The categories of this paper are: supr-con
11
The categories of this paper are: hep-lat
24
The categories of this paper are: dg-ga
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The categories of this paper are: eess
20
The categories of this paper are: acc-phys
15
The categories of this paper are: nucl-ex
29
The categories of this paper are: funct-an
34
The categories of this paper are: chem-ph
6
The categories of this paper are: astro-ph
17
The categories of this paper are: q-fin