DEFINITION of 'James J. Heckman'
An American economist who won the 2000 Nobel Memorial Prize in Economics, along with Daniel McFadden, for his Heckman correction, a statistical method of correcting for selfselection bias in research. In addition to selection bias and selfselection, Heckman's research has focused on labor economics and human development, and skill formation (especially early childhood development).
INVESTOPEDIA EXPLAINS 'James J. Heckman'
Heckman was born in 1944 in Chicago. He earned his Ph.D. in economics from Princeton and won the John Bates Clark medal in 1983. He has worked as a professor of economics at University College in Dublin; he also taught at the University of Chicago, Columbia and Yale.

Daniel L. McFadden
An American econometrician and winner, along with James Heckman, ... 
Sample Selection Bias
A type of bias caused by choosing nonrandom data for statistical ... 
Microeconomics
The branch of economics that analyzes the market behavior of ... 
Human Capital
A measure of the economic value of an employee's skill set. This ... 
Econometrics
The application of statistical and mathematical theories to economics ... 
Altman ZScore
The output of a creditstrength test that gauges a publicly traded ...

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Investing Basics
Human Capital: The Most Overlooked Asset Class
The skills and knowledge that allow you to make money are your best asset. Remember to invest in yourself! 
Fundamental Analysis
Explaining the Monte Carlo Simulation
Monte Carlo simulation is an analysis done by running a number of different variables through a model in order to determine the different outcomes. 
Fundamental Analysis
Explaining the Empirical Rule
The empirical rule provides a quick estimate of the spread of data in a normal statistical distribution. 
Economics
Explaining Demographics
Demographics is the study and categorization of people based on factors such as income level, education, gender, race, age, and employment. 
Fundamental Analysis
Calculating Degree of Financial Leverage
Degree of financial leverage (DFL) is a metric that measures the sensitivity of a company’s operating income due to changes in its capital structure. 
Fundamental Analysis
Calculating the Present Value of an Annuity
The present value of an annuity is the current, lump sum value of periodic future payments as calculated using a specific rate. 
Fundamental Analysis
How Does Sampling Work?
Sampling is a term used in statistics that describes methods of selecting a predefined representative number of data from a larger data population. 
Economics
Understanding Marginal Analysis
Marginal analysis is the process of comparing a oneunit incremental cost increase of an activity with a corresponding increase in benefits. 
Fundamental Analysis
Calculating the Equity Risk Premium
Equity risk premium is the excess expected return of a stock, or the stock market as a whole, over the riskfree rate. 
Fundamental Analysis
What is a Representative Sample?
In statistics, a representative sample accurately represents the makeup of various subgroups in an entire data pool.