I have a big confusion about the use of Switching regression model with endogenous switching and Heckman procedure.
Is a Switching regression model with endogenous switching always defined as:
- One selection equation
- Two outcome equations for each regime of the two possible regimes
This can be estimated using a Heckman procedure right?
So the Switching regression model with endogenous switching is the model and the Heckman procedure is the estimation method, right?
Because I found some papers describing the Heckman method (talking about Inverse Mills Ratios, etc) and saying this is the Switching regression model.
Can you help me please?
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