Table 9

Two-stage test results

VariableHeckman
(1)(2)
1st stage2nd stage
ReformΔlnpatent
Reform 0.3483**
 (2.10)
IV10.2553*** 
(2.96) 
IV2  
  
IMR −2.0177
 (−1.06)
ControlsYesYes
YearYesYes
Ind.YesYes
Constant0.10242.8009
(0.05)(1.03)
N654654
Wald χ2 31.70

Note(s):IV1 is the natural logarithm of firm numbers participating in the Reform in the same industry and year. IMR is the Inverse Mill’s Ratio achieved from our probit test. Controls are the same in our previous tests. ***, **, and *respectively indicate significance level at 1, 5, and 10%

Source(s): Table by authors

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