Great expectations? evidence from Colombia’s exchange rate survey

Latin American Economic Review

Table 8 Unbiasedness: \(E_{t}[\Delta S_{i,t+k}]=\beta _{0}+\beta _{1}\Delta S_{t+k}+\beta _{2}\lambda (\frac{x'_{it}\beta }{\sigma })+\sum _{j}{\gamma _jD_{year}}+\alpha _i+\epsilon _{it}\)

Source: authors’ calculations. \(\beta _2\) corresponds to the inverse mills ratio, \(\lambda (\cdot )\), estimated from the attrition probit regression (see Table 3). All estimations were conducted with clustered standard errors, reported in parenthesis. P values are reported only for the t test and Wald test (last two rows). Coefficients for time dummies are not reported. The Hausman test, conducted for all regressions, rejects the null hypothesis in which the unobserved time-invariant component is uncorrelated with the model’s covariates
***, **, * correspond to significance levels of 1, 5 and 10 %, respectively