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Identifying finite mixture models in the presence of moment-generating function: application in medical care using a zero-inflated binomial model

Author

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  • Hiroaki Masuhara

    (Faculty of Economics and Law, Shinshu University)

Abstract

This study presents a simple method to identify the parameters in finite mixture models when a moment-generating function (MGF) is present. We obtain the model conditions using a zero-inflated binomial model, a simple form of the finite mixture binary model, and analyze the results using the Monte Carlo simulation. Using the zero-inflated and standard binomial models, we compare the marginal effects of health care usage.

Suggested Citation

  • Hiroaki Masuhara, 2019. "Identifying finite mixture models in the presence of moment-generating function: application in medical care using a zero-inflated binomial model," Economics Bulletin, AccessEcon, vol. 39(2), pages 1529-1537.
    • Handle: RePEc:ebl:ecbull:eb-18-00287
    as

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    References listed on IDEAS

    as
    1. Deb, Partha & Trivedi, Pravin K., 2002. "The structure of demand for health care: latent class versus two-part models," Journal of Health Economics, Elsevier, vol. 21(4), pages 601-625, July.
    2. Hiroyuki Kasahara & Katsumi Shimotsu, 2014. "Non-parametric identification and estimation of the number of components in multivariate mixtures," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 76(1), pages 97-111, January.
    3. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LLC, number musr, July.
    4. Rainer Winkelmann, 2004. "Health care reform and the number of doctor visits-an econometric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 455-472.
    5. Deb, Partha & Trivedi, Pravin K, 1997. "Demand for Medical Care by the Elderly: A Finite Mixture Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 313-336, May-June.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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