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Modelling zero-inflated count data when exposure varies: with an application to sick leave

Author

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  • Gregori Baetschmann
  • Rainer Winkelmann

Abstract

This paper is concerned with the analysis of zero-inflated count data when time of exposure varies. It proposes a new zero-inflated count data model that is based on two homogeneous Poisson processes and accounts for exposure time in a theory consistent way. The new model is used in an application to the effect of insurance generosity on the number of absent days.

Suggested Citation

  • 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.
    • Handle: RePEc:zur:econwp:061
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    File URL: https://www.zora.uzh.ch/id/eprint/59265/1/econwp061.pdf
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    References listed on IDEAS

    as
    1. Jones, A., 2007. "Applied Econometrics for Health Economists: A Practical Guide," Monographs, Office of Health Economics, number 000262.
    2. Pizer, Steven D. & Prentice, Julia C., 2011. "Time is money: Outpatient waiting times and health insurance choices of elderly veterans in the United States," Journal of Health Economics, Elsevier, vol. 30(4), pages 626-636, July.
    3. Rainer Winkelmann, 2008. "Econometric Analysis of Count Data," Springer Books, Springer, edition 0, number 978-3-540-78389-3, September.
    4. Steven T. Yen & Chao‐Hsiun Tang & Shew‐Jiuan B. Su, 2001. "Demand for traditional medicine in Taiwan: a mixed Gaussian–Poisson model approach," Health Economics, John Wiley & Sons, Ltd., vol. 10(3), pages 221-232, April.
    5. Nazmi Sari, 2009. "Physical inactivity and its impact on healthcare utilization," Health Economics, John Wiley & Sons, Ltd., vol. 18(8), pages 885-901, August.
    6. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    7. Sisira Sarma & Wayne Simpson, 2006. "A microeconometric analysis of Canadian health care utilization," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 219-239, March.
    8. Tim Barmby & Michael Nolan & Rainer Winkelmann, 2001. "Contracted Workdays and Absence," Manchester School, University of Manchester, vol. 69(3), pages 269-275, June.
    9. Kevin E. Staub & Rainer Winkelmann, 2013. "Consistent Estimation Of Zero‐Inflated Count Models," Health Economics, John Wiley & Sons, Ltd., vol. 22(6), pages 673-686, June.
    10. Street, Andrew & Jones, Andrew & Furuta, Aya, 1999. "Cost-sharing and pharmaceutical utilisation and expenditure in Russia," Journal of Health Economics, Elsevier, vol. 18(4), pages 459-472, August.
    11. Treble,John & Barmby,Tim, 2011. "Worker Absenteeism and Sick Pay," Cambridge Books, Cambridge University Press, number 9780521806954.
    12. Barmby, Tim & Nolan, Michael & Winkelmann, Rainer, 2001. "Contracted Workdays and Absence," Manchester School, University of Manchester, vol. 69(3), pages 269-275, June.
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    Cited by:

    1. Klein, Nadja & Denuit, Michel & Lang, Stefan & Kneib, Thomas, 2014. "Nonlife ratemaking and risk management with Bayesian generalized additive models for location, scale, and shape," Insurance: Mathematics and Economics, Elsevier, vol. 55(C), pages 225-249.
    2. Klein, Nadja & Denuit, Michel & Lang, Stefan & Kneib, Thomas, 2013. "Nonlife Ratemaking and Risk Management with Bayesian Additive Models for Location, Scale and Shape," LIDAM Discussion Papers ISBA 2013045, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    3. Nadja Klein & Michel Denuit & Stefan Lang & Thomas Kneib, 2013. "Nonlife Ratemaking and Risk Management with Bayesian Additive Models for Location, Scale and Shape," Working Papers 2013-24, Faculty of Economics and Statistics, Universität Innsbruck.
    4. Yanlin Tang & Liya Xiang & Zhongyi Zhu, 2014. "Risk Factor Selection in Rate Making: EM Adaptive LASSO for Zero‐Inflated Poisson Regression Models," Risk Analysis, John Wiley & Sons, vol. 34(6), pages 1112-1127, June.

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    More about this item

    Keywords

    Exposure; Poisson regression; complementary log-log link;
    All these keywords.

    JEL classification:

    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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