Copula Bivariate Probit Models: With An Application To Medical Expenditures
AbstractThe bivariate probit model is frequently used for estimating the effect of an endogenous binary regressor (the "treatment") on a binary health outcome variable. This paper discusses simple modifications that maintain the probit assumption for the marginal distributions while introducing non-normal dependence using copulas. In an application of the copula bivariate probit model to the effect of insurance status on the absence of ambulatory health care expen- diture, a model based on the Frank copula outperforms the standard bivariate probit model.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Health Economics.
Volume (Year): 21 (2012)
Issue (Month): 12 (December)
Contact details of provider:
Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749
Other versions of this item:
- Rainer Winkelmann, 2011. "Copula bivariate probit models: with an application to medical expenditures," ECON - Working Papers, Department of Economics - University of Zurich 029, Department of Economics - University of Zurich.
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- I12 - Health, Education, and Welfare - - Health - - - Health Production
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karen Smith Conway & Andrea Kutinova, 2006. "Maternal health: does prenatal care make a difference?," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 15(5), pages 461-488.
- Brigitte Dormont & Pierre-Yves Geoffard & Karine Lamiraud, 2009.
"The influence of supplementary health insurance on switching behaviour: evidence from Swiss data,"
Health Economics, John Wiley & Sons, Ltd.,
John Wiley & Sons, Ltd., vol. 18(11), pages 1339-1356.
- Dormont, Brigitte & Geoffard, Pierre-Yves & Lamiraud, Karine, 2009. "The influence of supplementary health insurance on switching behaviour : evidence from Swiss data," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/1623, Paris Dauphine University.
- Zimmer, David M. & Trivedi, Pravin K., 2006. "Using Trivariate Copulas to Model Sample Selection and Treatment Effects: Application to Family Health Care Demand," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 24, pages 63-76, January.
- Artem Prokhorov & Peter Schmidt, 2009.
"Likelihood Based Estimation in a Panel Setting: Robustness, Redundancy and Validity of Copulas,"
Working Papers, Concordia University, Department of Economics
09002, Concordia University, Department of Economics.
- Prokhorov, Artem & Schmidt, Peter, 2009. "Likelihood-based estimation in a panel setting: Robustness, redundancy and validity of copulas," Journal of Econometrics, Elsevier, Elsevier, vol. 153(1), pages 93-104, November.
- White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 1-25, January.
- Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, Elsevier, vol. 69(3), pages 309-312, December.
- Michael T. French & Johanna C. Maclean, 2006. "Underage alcohol use, delinquency, and criminal activity," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 15(12), pages 1261-1281.
- Trivedi, Pravin K. & Zimmer, David M., 2007. "Copula Modeling: An Introduction for Practitioners," Foundations and Trends(R) in Econometrics, now publishers, now publishers, vol. 1(1), pages 1-111, April.
- Murray D. Smith, 2003. "Modelling sample selection using Archimedean copulas," Econometrics Journal, Royal Economic Society, Royal Economic Society, vol. 6(1), pages 99-123, 06.
- Murphy, Anthony, 2007.
"Score tests of normality in bivariate probit models,"
Economics Letters, Elsevier,
Elsevier, vol. 95(3), pages 374-379, June.
- Anthony Murphy, 2005. "Score Tests of Normality in Bivariate Probit Models," Econometrics, EconWPA 0512004, EconWPA.
- Murray D. Smith, 2005. "Using Copulas to Model Switching Regimes with an Application to Child Labour," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 81(s1), pages S47-S57, 08.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, Econometric Society, vol. 51(2), pages 507-12, March.
- Ehsan Latif, 2009. "The impact of diabetes on employment in Canada," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 18(5), pages 577-589.
- Lara Gitto & Domenico Santoro & Giuseppe Sobbrio, 2006. "Choice of dialysis treatment and type of medical unit (private vs public): application of a recursive bivariate probit," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 15(11), pages 1251-1256.
- Ziggy MacDonald & Michael A. Shields, 2004. "Does problem drinking affect employment? Evidence from England," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 13(2), pages 139-155.
- Murat K. Munkin & Partha Deb & Pravin K. Trivedi, 2006. "Bayesian analysis of the two-part model with endogeneity: application to health care expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 21(7), pages 1081-1099.
- repec:sae:ecolab:v:16:y:2006:i:2:p:1-2 is not listed on IDEAS
- Koenker, Roger & Yoon, Jungmo, 2009. "Parametric links for binary choice models: A Fisherian-Bayesian colloquy," Journal of Econometrics, Elsevier, Elsevier, vol. 152(2), pages 120-130, October.
- Munkin, Murat K. & Trivedi, Pravin K., 2008. "Bayesian analysis of the ordered probit model with endogenous selection," Journal of Econometrics, Elsevier, Elsevier, vol. 143(2), pages 334-348, April.
- Giampiero Marra & Rosalba Radice & Silvia Missiroli, 2014. "Testing the hypothesis of absence of unobserved confounding in semiparametric bivariate probit models," Computational Statistics, Springer, Springer, vol. 29(3), pages 715-741, June.
- Hasebe, Takuya, 2013. "Marginal effects of a bivariate binary choice model," Economics Letters, Elsevier, Elsevier, vol. 121(2), pages 298-301.
- Katarzyna Bień-Barkowska, 2012. "A Bivariate Copula-based Model for a Mixed Binary-Continuous Distribution: A Time Series Approach," Central European Journal of Economic Modelling and Econometrics, CEJEME, CEJEME, vol. 4(2), pages 117-142, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.