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A dynamic hurdle model for zero-inflated count data


Baetschmann, Gregori; Winkelmann, Rainer (2017). A dynamic hurdle model for zero-inflated count data. Communications in Statistics. Theory and Methods, 46(14):7174-7187.

Abstract

Excess zeros are encountered in many empirical count data applications. We provide a new explanation of extra zeros, related to the underlying stochastic process that generates events. The process has two rates, a lower rate until the first event, and a higher one thereafter. We derive the corresponding distribution of the number of events during a fixed period and extend it to account for observed and unobserved heterogeneity. An application to the socio-economic determinants of the individual number of doctor visits in Germany illustrates the usefulness of the new approach.

Abstract

Excess zeros are encountered in many empirical count data applications. We provide a new explanation of extra zeros, related to the underlying stochastic process that generates events. The process has two rates, a lower rate until the first event, and a higher one thereafter. We derive the corresponding distribution of the number of events during a fixed period and extend it to account for observed and unobserved heterogeneity. An application to the socio-economic determinants of the individual number of doctor visits in Germany illustrates the usefulness of the new approach.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Excess zeros, Poisson process, exposure, hurdle model
Language:English
Date:2017
Deposited On:29 Sep 2016 12:55
Last Modified:26 Apr 2017 01:00
Publisher:Taylor & Francis
ISSN:0361-0926
Additional Information:This is an Accepted Manuscript of an article published by Taylor & Francis in Communications in Statistics - Theory and Methods on 11.07.2016, available online: http://wwww.tandfonline.com/10.1080/03610926.2016.1146766
Publisher DOI:https://doi.org/10.1080/03610926.2016.1146766

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