Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-51533
Winkelmann, Rainer (2011). Copula bivariate probit models: with an application to medical expenditures. Working paper series / Department of Economics No. 29, University of Zurich.
The bivariate probit model is frequently used for estimating the eff*ect of an endogenous binary regressor (the "treatment") on a binary health outcome variable. This paper discusses simple modifi*cations that maintain the probit assumption for the marginal distributions while introducing non-normal dependence using copulas. In an application of the copula bivariate probit model to the effect of insurance status on the absence of ambulatory health care expenditure, a model based on the Frank copula outperforms the standard bivariate probit model.
|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics|
Working Paper Series > Department of Economics
|JEL Classification:||C35, I12|
|Deposited On:||25 Nov 2011 11:13|
|Last Modified:||20 Oct 2012 20:15|
|Series Name:||Working paper series / Department of Economics|
Users (please log in): suggest update or correction for this item
Repository Staff Only: item control page