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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title A dynamic hurdle model for zero-inflated count data: with an application to health care utilization
Organization Unit
  • Gregori Baetschmann
  • Rainer Winkelmann
  • English
Institution University of Zurich
Series Name Working paper series / Department of Economics
Number 151
ISSN 1664-7041
Number of Pages 22
Date 2014
Abstract Text 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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Keywords Excess zeros, Poisson process, exposure, hurdle model, Poisson-Prozess, Gesundheitsökonomie