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Consistent Estimation Of Zero‐Inflated Count Models

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  • Kevin E. Staub
  • Rainer Winkelmann

Abstract

Applications of zero-inflated count data models have proliferated in health economics. However, zero-inflated Poisson or zero-inflated negative binomial maximum likelihood estimators are not robust to misspecification. This paper proposes Poisson quasi-likelihood estimators as an alternative. These estimators are consistent in the presence of excess zeros without having to specify the full distribution. The advantages of the Poisson quasi-likelihood approach are illustrated in a series of Monte Carlo simulations and in an application to the demand for health services.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 22 (2013)
Issue (Month): 6 (06)
Pages: 673-686

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Handle: RePEc:wly:hlthec:v:22:y:2013:i:6:p:673-686

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Axel Heitmueller, 2003. "Job Mobility in Britain: Are the Scots Different? Evidence from the BHPS," Working Papers E02, Department of Economics, School of Management and Languages, Heriot Watt University.
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Cited by:
  1. Prehn, Soren & Brummer, Bernhard & Glauben, Thomas, 2012. "Structural Gravity Estimation & Agriculture," 2012: New Rules of Trade?, December 2012, San Diego, California 142765, International Agricultural Trade Research Consortium.
  2. Ilja Neustadt & Peter Zweifel, 2009. "Economic Well-Being, Social Mobility, and Preferences for Income Redistribution: Evidence from a Discrete Choice Experiment," SOI - Working Papers 0909, Socioeconomic Institute - University of Zurich, revised Jan 2010.
  3. Maurus Rischatsch & Maria Trottmann, 2009. "Physician dispensing and the choice between generic and brand-name drugs – Do margins affect choice?," SOI - Working Papers 0911, Socioeconomic Institute - University of Zurich.
  4. Maurus Rischatsch, 2009. "Simulating WTP Values from Random-Coefficient Models," SOI - Working Papers 0912, Socioeconomic Institute - University of Zurich.
  5. Gregori Baetschmann & Rainer Winkelmann, 2012. "Modelling zero-inflated count data when exposure varies: with an application to sick leave," ECON - Working Papers 061, Department of Economics - University of Zurich.
  6. Prehn, Sören & Brümmer, Bernhard, 2011. "Estimation issues in disaggregate gravity trade models," DARE Discussion Papers 1107, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
  7. Steiner, Susan & Chakraborty, Tanika & Mirkasimov, Bakhrom, 2013. "Transfer Behaviour in Migrant Sending Communities," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79713, Verein für Socialpolitik / German Economic Association.
  8. Pandit, Mahesh & Paudel, Krishna P. & Hinson, Roger A., 2012. "Intensity of Integrated Pest Management (IPM) Practices Adoption by U.S. Nursery Crop Producers," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124942, Agricultural and Applied Economics Association.
  9. Prehn, Sören & Brümmer, Bernhard & Glauben, Thomas, 2012. "Structural gravity estimation & agriculture," DARE Discussion Papers 1209, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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