Heckman estimation

[coder_79]

There are two ways to estimate a heckman model: two step vs ML.
For ML, estimates of rho and sigma are reported but not for two step.
Is sigma an estimate of the variance of the error term in the response equation (without inverse mills ratio)? How is it different from SE of regression?
Thanks,

[joshchipunza]

Hi... Is there anyone who can help me with the step to follow when you are estimating an OLS equation with the Inverse Mills ratio using Eviews 8.I have tried estimating the Heckman two -step procedure but I do not know how to get the Inverse Mill ratio to correct for self selection bias when estimating the actual model. I hope I am making myself clear enough to someone who can assist dearly.

[joshchipunza]

In Eviews 8 there is an option of estimating the Heckman two step procedure but my methodology requires the estimation of the OLS model including the Inverse Mills ratio as en independent variable. As such i am not sure how to go about it after i estimate the Heckman's model so as to incorporate the Inverse Mills ratio in the OLS regression thereafter .

Is there a step by step procedure of how to go about it using Eviews 8. That will be very helpful. Thank you in advance!