Announcement

Collapse
No announcement yet.
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Heckman Correction

    Dear All:

    I use logistic regression analysis to model the likelihood that a drug-development project results in termination or approval. We include firm-specific fixed effects to control for unobserved firm heterogeneity. Our independent variables include failure and success experience of the firms. We assume that how many times you have failed or succeed in the past will affect your chances of future failure.

    One of the reviewers at a journal suggested using Heckman selection model. After reading about it it seems to me that this would be redundant as our model already includes firm-specific fixed effects. I am just wondering if I am missing something in their suggestion.

    Thanks
    Antonio


  • #2
    Hi Antonio
    I do not think you have a sample selection problem, so the common idea of heckman selection does not apply here. It may be that you have some endogenous attrition in your data, which could be viewed as sample selection.
    Also, perhaps there is other information in your paper, or in the referee report, that explains about why sample selection was considered as a problem. But based on your description, i cannot see how heckman selection fits in your research problem.
    HTH
    Fernando

    Comment


    • #3
      Hi Fernando,
      Thanks for your answer. Very useful. I think there is some confusion with the reviewer.
      Antonio

      Comment

      Working...
      X