The Effects of Firm Size and Experience on Safety and Environmental Performance in the Oil and Gas Industry, Part I : A Proposed Treatment for Sample Selection in Detection-Controlled Estimation Models

Consider a case where it is desired to estimate a detection-controlled estimation model in each of two regimes where the observations in each regime are the result of a selection process. This paper proposes a treatment for this sample selection problem for the case of a probit selection equation and Poisson/probit detection-controlled estimation model. While not investigated here, extensions to the proposed treatment for other functional forms of the selection equation and/or the detection-controlled estimation model are believed to be straightforward