Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity

Lee, Lung Fei; Maddala, G. S.; Trost, Robert P.

doi:10.2307/1911112

Cited by 209 publications

(100 citation statements)

References 10 publications

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“…Prior research (e.g., Hamilton and Nickerson 2003) suggests that the inability to control for unobserved features of the exchange (such as user firm or provider attributes, market conditions, or embeddedness between the firms) that simultaneously influence the choice of contract as well as use of the information structure and BPO performance results in biased, inconsistent estimates. To account for possibly endogenous choices of the contract, we employ a two-stage regression model that is derived from work in labor economics (Heckman 1979, Lee et al 1980, Smith 1980.…”

Section: Discussionmentioning

confidence: 99%

An Empirical Analysis of the Contractual and Information Structures of Business Process Outsourcing Relationships

Mani

Barua

Whinston

2012

Information Systems Research

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T he emergence of information-intensive business process outsourcing (BPO) relationships calls for the study of exchange performance beyond traditional considerations of the contractual structure that facilitates cooperative intent to include the information structure that facilitates the mutual exchange of information to enact cooperative intent and coordinate actions between the user firm and the service provider. Yet, there has been little analysis of the drivers and performance effects of the information structure of BPO relationships, including its linkages to the underlying contractual structure. This study integrates perspectives in neo-institutional economics and information processing to develop and test the theoretical argument that the extent of use and performance effects of the information structure of the BPO relationship are greater in time and materials BPO contracts than in fixed-price BPO contracts. Survey data on 134 BPO relationships provide empirical support for our hypotheses. The synergistic impact of incentives and information on BPO performance emphasizes that their joint assessment is necessary to enhance the explanatory power of extant theories of organization. This result also has implications for achieving maximum benefits from complex BPO arrangements that are more likely to be characterized by time and material contracts.

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Section: Discussionmentioning

confidence: 99%

An Empirical Analysis of the Contractual and Information Structures of Business Process Outsourcing Relationships

Mani

Barua

Whinston

2012

Information Systems Research

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“…To accomplish this in a straightforward way, a generalized Heckman approach is used wherein index values for each of the discrete variables in the prior stages are substituted into the third-stage model prior to estimation. As such, this method is similar to the class of simultaneous equations models with discrete / continuous selectivity developed by Lee, Maddala and Trost (1980). Given each of these considerations, the LES upper-level demands are written:…”

Section: Theoretical Model Of Price Promotions For Perishable Productsmentioning

confidence: 99%

Sales by multi-product retailers

Richards

2006

Manage. Decis. Econ.

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This paper examines the rationale underlying periodic price promotions, or sales, for perishable food products by supermarket retailers. Whereas previous studies explain sales in a single-product context as arising from informational, storage cost, or demand heterogeneity, this study focuses on the central role of retailers as multi-product sellers of complementary goods. By offering a larger number of discounted products within a particular category, retailers are able to attract a sufficient number of customers to offset the effect of lower margins on sale items by selling more high-margin items. The implications that emerge from the resulting mixed-strategy equilibrium are tested in a product-level, retail-scanner data set of fresh fruit sales. Hypotheses regarding the rationale and effectiveness of sales are tested by estimating econometric models that describe (1) the number of sales items per store, (2) the depth of a given sale, and (3) promotion effectiveness on store-level demand. The results of this econometric analysis support the hypothesis that the breadth and depth of price promotions are complementary marketing tools, thus explaining how EDLP and HI-LO store formats can exist in the same monopolistically competitive market equilibrium. Copyright © 2006 John Wiley & Sons, Ltd.

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“…The empirical results reveal that properties tend to sort systematically into the two title systems, generally following a selfselection process consistent with the theory. Lee, et al (1980) error adjustment is used to calculate the asymptotic t-statistics reported in parentheses. …”

Section: Discussionmentioning

confidence: 99%

A question of title: Property rights and asset values

Miceli

Munneke

Sirmans

et al. 2011

Regional Science and Urban Economics

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This paper examines the impact of land title systems on property values. The predominant system in the U.S., the recording system, awards title to claimants over current possessors, whereas the Torrens registration system awards title to the current owner. In theory, the registration system maximizes property value, all else equal, but in practice, the systems differ depending on the risk of a claim and administrative costs. A natural experiment in Cook County, Illinois, where both systems have existed since 1897, allows a test of the theory. The results, based on commercial and industrial properties, reveal that parcels tend to self-select into the two systems based on the predictions of the theory.Journal of Economic Literature Classification: K11, P14, R14

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Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity

Cited by 209 publications

References 10 publications

An Empirical Analysis of the Contractual and Information Structures of Business Process Outsourcing Relationships

An Empirical Analysis of the Contractual and Information Structures of Business Process Outsourcing Relationships

Sales by multi-product retailers

A question of title: Property rights and asset values

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