• Corpus ID: 221655463

Spatial Differencing for Sample Selection Models with Unobserved Heterogeneity

  title={Spatial Differencing for Sample Selection Models with Unobserved Heterogeneity},
  author={Alexander Klein and Guy Tchuente},
  journal={arXiv: Econometrics},
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… 

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