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A dynamic hurdle model for zero-inflated count data: with an application to health care utilization


Baetschmann, Gregori; Winkelmann, Rainer (2014). A dynamic hurdle model for zero-inflated count data: with an application to health care utilization. Working paper series / Department of Economics 151, University of Zurich.

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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3 citations in Microsoft Academic

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:C25, I10
Uncontrolled Keywords:Excess zeros, Poisson process, exposure, hurdle model, Poisson-Prozess, Gesundheitsökonomie
Language:English
Date:April 2014
Deposited On:08 Apr 2014 15:27
Last Modified:12 Sep 2018 15:09
Series Name:Working paper series / Department of Economics
Number of Pages:22
ISSN:1664-7041
OA Status:Green
Official URL:http://www.econ.uzh.ch/static/wp/econwp151.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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