IT outsourcing and firm productivity : eliminating bias from selective missingness in the dependent variable
Christoph Breunig, Michael Kummer, Jörg Ohnemus, and Steffen Viete
Missing values are a major problem in all econometric applications based on survey data. A standard approach assumes data are missing-at-random and uses imputation methods, or even listwise deletion. This approach is justified if item non-response does not depend on the potentially missing variables' realization. However, assuming missing-at-random may introduce bias if non-response is, in fact, selective. Relevant applications range from financial or strategic firm-level data to individual-level data on income or privacy-sensitive behaviors. In this paper, we propose a novel approach to deal with selective item nonresponse in the model's dependent variable. Our approach is based on instrumental variables that affect selection only through potential outcomes. In addition, we allow for endogenous regressors. We establish identification of the structural parameter and propose a simple two-step estimation procedure for it. Our estimator is consistent and robust against biases that would prevail when assuming missingness at random. We implement the estimation procedure using firm-level survey data and a binary instrumental variable to estimate the effect of outsourcing on productivity.
Year of publication: |
2016
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Authors: | Breunig, Christoph ; Kummer, Michael E. ; Ohnemus, Jörg ; Viete, Steffen |
Publisher: |
Mannheim : ZEW, Centre for European Economic Research |
Subject: | endogenous selection | IV-estimation | inverse probability weighting | missing data | productivity | outsourcing | semiparametric estimation | Outsourcing | Produktivität | Productivity | Nichtparametrisches Verfahren | Nonparametric statistics | Schätztheorie | Estimation theory | Systematischer Fehler | Bias |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 28 Seiten) Illustrationen |
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Series: | ZEW discussion papers. - Mannheim : ZEW, ZDB-ID 2125128-9. - Vol. no. 16, 092 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Other identifiers: | hdl:10419/148921 [Handle] |
Classification: | C14 - Semiparametric and Nonparametric Methods ; c36 ; D24 - Production; Capital and Total Factor Productivity; Capacity ; L24 - Contracting Out; Joint Ventures |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10011580805