Czado, Claudia; Erhardt, Vinzenz; Min, Aleksey
Zero-inflated generalized Poisson models with regression effects on the mean, dispersion and zero-inflation level applied to patent outsourcing rates.
Sonderforschungsbereich 386, Discussion Paper 482
This paper focuses on an extension of zero-inflated generalized Poisson (ZIGP) regression models for count data. We discuss generalized Poisson (GP) models where dispersion is modelled by an additional model parameter. Moreover, zero-inflated models in which overdispersion is assumed to be caused by an excessive number of zeros are discussed. In addition to ZIGP regression introduced by Famoye and Singh (2003), we now allow for regression on the overdispersion and zero-inflation parameters. Consequently, we propose tools for an exploratory data analysis on the dispersion and zero-inflation level. An application dealing with outsourcing of patent filing processes will be used to compare these nonnested models. The model parameters are fitted by maximum likelihood. Asymptotic normality of the ML estimates in this non-exponential setting is proven. Standard errors are estimated using the asymptotic normality of the estimates. Appropriate exploratory data analysis tools are developed. Also, a model comparison using AIC statistics and Vuong tests (see Vuong (1989)) is carried out. For the given data, our extended ZIGP regression model will prove to be superior over GP and ZIP models and even ZIGP models with constant overall dispersion and zero-inflation parameters demonstrating the usefulness of our proposed extensions.