This question may seem obvious to people who are familiar with the two-step Heckman method, but since my searches have been unsuccessful up to this point, I ask this question.
- My data is related to the set of companies that have done research and development.
- The data is cross-sectional and non-random.
- I want to observe the effect of some policies on their research and development expenditures (which differ in some characteristics).
- Importantly, my data does not include any information about companies that did not conduct R&D.
Is the two-step method suitable for such data?
Temesgen Wajebo
No.two step Heckman model is designed to address the selection bias.
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Saeed Dorokhshi Moghaddam
Thank you very much dear Farrukh Mahmood and Temesgen Wajebo for your answers and advices, but what is the best solution in my case? do you have any idea?
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Farrukh Mahmood
If it is possible the try to generate missing values (Hair, J. F. (2009). Multivariate data analysis, chapter: examining your data) or otherwise, ignore them.
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