Estimation of count data models with endogenous regressors; an application to demand for health care

Windmeijer, F. A. G. und Santos Silva, J. M. C. (1996): Estimation of count data models with endogenous regressors; an application to demand for health care. Sonderforschungsbereich 386, Discussion Paper 20

Abstract

The generalized method of moments (GMM) estimation technique is discussed for count data models with endogenous regressors. Count data models can be specified with additive or multiplicative errors. It is shown that, in general, a set of instruments is not orthogonal to both error types. Simultaneous equations with a dependent count variable often do not have a reduced form which is a simple function of the instruments. However, a simultaneous model with a count and a binary variable can only be logically consistent when the system is recursive. The GMM estimator is used in the estimation of a model explaining the number of visits to doctors, with as a possible endogenous regressor a self-reported binary health index. Further, a model is estimated, in stages, that includes latent health instead of the binary health index.

• Dokumententyp: Paper
• Fakultät: Mathematik, Informatik und Statistik > Statistik > Sonderforschungsbereich 386 ; Sonderforschungsbereiche > Sonderforschungsbereich 386
• Themengebiete: 500 Naturwissenschaften und Mathematik > 510 Mathematik
• Sprache: Englisch