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An ordered categorical response model with endogenous switching: Simulation Exercises and an Application to State Health

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  • Andrés Ramirez Hassan

    ()

  • Johnatan Cardona Jimenez

Abstract

We develop and estimate a full information maximum likelihood ordered categorical response model with endogenous switching. Simulation exercises show that estimated parameters are unbias and consistent. And application to Internet access indicates that there are selection and moral hazard.

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File URL: http://repository.eafit.edu.co/bitstream/10784/581/1/2011-6%20Andres%20Ramirez%20Hassan.pdf
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Bibliographic Info

Paper provided by UNIVERSIDAD EAFIT in its series DOCUMENTOS DE TRABAJO CIEF with number 010608.

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Length: 11
Date of creation: 01 May 2011
Date of revision:
Handle: RePEc:col:000122:010608

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Related research

Keywords: Endogenous Switching; Categorical Response; Evolution Strategy;

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  1. Michelle M. Mello & Sally C. Stearns & Edward C. Norton, 2002. "Do Medicare HMOs still reduce health services use after controlling for selection bias?," Health Economics, John Wiley & Sons, Ltd., vol. 11(4), pages 323-340.
  2. Munkin, Murat K. & Trivedi, Pravin K., 2008. "Bayesian analysis of the ordered probit model with endogenous selection," Journal of Econometrics, Elsevier, vol. 143(2), pages 334-348, April.
  3. Cardon, James H & Hendel, Igal, 2001. "Asymmetric Information in Health Insurance: Evidence from the National Medical Expenditure Survey," RAND Journal of Economics, The RAND Corporation, vol. 32(3), pages 408-27, Autumn.
  4. Mayer, D. G. & Kinghorn, B. P. & Archer, A. A., 2005. "Differential evolution - an easy and efficient evolutionary algorithm for model optimisation," Agricultural Systems, Elsevier, vol. 83(3), pages 315-328, March.
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