@article{Ophem:293150, recid = {293150}, author = {Ophem, Hans van}, title = {HETEROSCEDASTICITY IN SELECTIVITY MODELS}, address = {1992-10-6}, number = {2243-2019-3572}, series = {AE 19/92}, pages = {36}, month = {Oct}, year = {1992}, abstract = {Selectivity models usually consist of two equations: a linear and a qualitative variables equation. This paper investigates the consistency of the ML-estimates of two selectivity models in which the heteroscedasticity of the error term of the linear equation is ignored. Homoscedastic estimation of a heteroscedastic model is proved to yield inconsistent estimates. Some Monte Carlo evidence is also provided.}, url = {http://ageconsearch.umn.edu/record/293150}, doi = {https://doi.org/10.22004/ag.econ.293150}, }