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The health-economic applications of copulas: methods in applied econometric research

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Author Info
Casey Quinn
Abstract

A copula is best described, as in Joe (1997), as a multivariate distribution function that is used to bind each marginal distribution function to form the joint. The copula parameterises the dependence between the margins, while the parameters of each marginal distribution function can be estimated separately. This is a brief introduction to copulas and multivariate dependence issues within a health economics context. The research presented here will make its own contributions to the development of copulas as a methodology, but more importantly will make deliberate inroads into health economic applications of copulas. To do this, common analytic problems faced by health economists are considered. Some of the differences between the copula methodology and existing alternatives are discussed, and a generalisable, systematic approach to estimation is provided.

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Publisher Info
Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 07/22.

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Date of creation: Oct 2007
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Handle: RePEc:yor:hectdg:07/22

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Find related papers by JEL classification:
C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
C5 - Mathematical and Quantitative Methods - - Econometric Modeling
I3 - Health, Education, and Welfare - - Welfare and Poverty
I10 - Health, Education, and Welfare - - Health - - - General

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  1. José M. R. Murteira & Óscar D. Lourenço, 2007. "Health Care Utilization and Self-Assessed Health Specification of Bivariate Models Using Copulas," Health, Econometrics and Data Group (HEDG) Working Papers 07/27, HEDG, c/o Department of Economics, University of York. [Downloadable!]
  2. Chandra Bhat & Ipek Sener, 2009. "A copula-based closed-form binary logit choice model for accommodating spatial correlation across observational units," Journal of Geographical Systems, Springer, vol. 11(3), pages 243-272, September. [Downloadable!] (restricted)
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