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The results are presented under the estimated results of the outcome equation in Table 3.
Non-informative uniform priors were used for both the propensity score equation and the outcome equation.
The estimation of the outcome equation relates only to migrants who have remitted (Zi = 1).
Remittance equation (outcome equation): {Y}_i=beta {X}_i+{varepsilon}_i, (2b).
We have tested whether the instrument is exogenous in the outcome equation by checking whether there exist any relationship between this instrument and both the amount remitted and the error term in this outcome equation.
Instead, as an ad hoc test, we include sibling BMI (along with own BMI) in the outcome equation.
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The outcome equations are presented in columns (4) to (6).
As indicated previously, the FIML is employed to jointly estimate the selection and outcome equations.
Empirical models in this study are specified below by selection and outcome equations.
The correlation coefficients between the error of criterion equation (adoption) and errors of outcome equations (yield equations) in each specification are given in the last row.
The results of the Heckman two-step model for the selection and the outcome equations are presented in Table 7.
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