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A Spatial Sample Selection Model

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  • Yong Bao
  • Gucheng Li
  • Xiaotian Liu

Abstract

This paper presents a sample selection model with spatial correlation in the selection and outcome variables and studies the maximum likelihood method of estimation. Consistency and asymptotic normality of the maximum likelihood estimator are established by the spatial near‐epoch dependent properties of the variables. Monte Carlo simulations show its good finite‐sample performance. This model is used to examine the impact of climate change on cereal yields in Southeast Asia and projects that climate change may cause a reduction in cereal yields by 7%$$ 7\% $$ (31%$$ 31\% $$) in the minimum‐change (maximum‐change) scenario.

Suggested Citation

  • Yong Bao & Gucheng Li & Xiaotian Liu, 2024. "A Spatial Sample Selection Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(4), pages 928-950, August.
    • Handle: RePEc:bla:obuest:v:86:y:2024:i:4:p:928-950
    DOI: 10.1111/obes.12599
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