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Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation

Author

Listed:
  • Bratti, Massimiliano

    (Università degli Studi di Milano)

  • Miranda, Alfonso

    (CIDE, Mexico City)

Abstract

In this paper we propose an estimator for models in which an endogenous dichotomous treatment affects a count outcome in the presence of either sample selection or endogenous participation using maximum simulated likelihood. We allow for the treatment to have an effect on both the sample selection or the participation rule and the main outcome. Applications of this model are frequent in – but are not limited to – health economics. We show an application of the model using data from Kenkel and Terza (2001), who investigate the effect of physician advice on the amount of alcohol consumption. Our estimates suggest that in these data (i) neglecting treatment endogeneity leads to a wrongly signed effect of physician advice on drinking intensity, (ii) neglecting endogenous participation leads to an upward biased estimate of the treatment effect of physician advice on drinking intensity.

Suggested Citation

  • Bratti, Massimiliano & Miranda, Alfonso, 2010. "Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation," IZA Discussion Papers 5372, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5372
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    Cited by:

    1. Adewale Isaac Olutumise, 2023. "Impact of credit on the climate adaptation utilization among food crop farmers in Southwest, Nigeria: application of endogenous treatment Poisson regression model," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-19, December.
    2. Bopp, C. & Engler, A. & Poortvliet, M. & Jara-Rojas, R., 2018. "Soil conservation behavior among annual crop farmers: the moderating role of intrinsic on extrinsic motivations," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277300, International Association of Agricultural Economists.
    3. Rajendran, Srinivasulu & Afari-Sefa, Victor & Karanja, Daniel Kimani & Musebe, Richard & Romney, Dannie & Makaranga, Magesa A. & Samali, Silvest & Kessy, Radegunda Francis, . "Farmer-Led Seed Enterprise Initiatives to Access Certified Seed for Traditional African Vegetables and its Effect on Incomes in Tanzania," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(01), pages 1-24.
    4. Oyenubi, Adeola & Kollamparambil, Umakrishnan, 2022. "Does the child support grant incentivise childbirth in South Africa?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 812-825.

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    Keywords

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    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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