This paper develops a simple bivariate count data regression model in which dependence between count variables is introduced by means of stochastically related unobserved heterogeneity components. Unlike existing commonly used bivariate models, we obtain a computationally simple closed form of the model with an unrestricted correlation pattern. An application to Medicaid utilization is provided.
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Find related papers by JEL classification: C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
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