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A Multiple State Duration Model with Endogenous Treatment

  • Mroz, T.;
  • Picone, G.;

This study develops a discrete multiple state duration model that al- lows for duration dependence, unmeasured heterogeneity, partial observ- ability of the state and endogenous time-varying treatment. Our econo- metric strategy has numerous potential empirical applications. We apply our duration model to the progression of diabetic neuropathy, a compli- cation of diabetes with four levels of progression, which if left untreated may lead to amputation. Our results show that the longer a person has diabetes without having being diagnosed (and treated) increases the prob- abilities of transitioning to a worse stage, death or amputation.

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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 11/19.

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Date of creation: Jul 2011
Date of revision:
Handle: RePEc:yor:hectdg:11/19
Contact details of provider: Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Fax: (0)1904 323759
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  1. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June.
  2. Lechner, Michael & Wunsch, Conny, 2006. "Are Training Programs More Effective When Unemployment Is High?," IZA Discussion Papers 2355, Institute for the Study of Labor (IZA).
  3. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  4. Heckman, James J. & Navarro, Salvador, 2005. "Dynamic Discrete Choice and Dynamic Treatment Effects," IZA Discussion Papers 1790, Institute for the Study of Labor (IZA).
  5. Gabriel Picone & Derek Brown & Frank Sloan & Paul Lee, 2004. "Do Routine Eye Exams Improve Vision?," International Journal of Health Care Finance and Economics, Springer, vol. 4(1), pages 43-63, 03.
  6. Jayanta Bhattacharya, 2005. "Specialty Selection and Lifetime Returns to Specialization Within Medicine," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
  7. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
  8. Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
  9. Thomas A. Mroz & Timothy H. Savage, 2006. "The Long-Term Effects of Youth Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  10. Mroz, T.A. & Weir, D.R., 1988. "Structural Change In Life Cycle Fertility During The Fertility Transition: France Before And After The Revolution," University of Chicago - Economics Research Center 88-13, Chicago - Economics Research Center.
  11. Liu, Haiyong & Mroz, Thomas & Adair, Linda, 2009. "Parental compensatory behaviors and early child health outcomes in Cebu, Philippines," Journal of Development Economics, Elsevier, vol. 90(2), pages 209-230, November.
  12. Jaap Abbring & James Heckman, 2008. "Dynamic policy analysis," CeMMAP working papers CWP05/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  13. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  14. Glewwe, Paul & Jacoby, Hanan G., 2004. "Economic growth and the demand for education: is there a wealth effect?," Journal of Development Economics, Elsevier, vol. 74(1), pages 33-51, June.
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