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A Multiple State Duration Model with Endogenous Treatment

Thomas Mroz and G. Picone

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: This study develops a discrete multiple state duration model that al- lows for duration dependence, unmeasured heterogeneity, partial observ- ability of the state and endogenous time-varying treatment. Our econo- metric strategy has numerous potential empirical applications. We apply our duration model to the progression of diabetic neuropathy, a compli- cation of diabetes with four levels of progression, which if left untreated may lead to amputation. Our results show that the longer a person has diabetes without having being diagnosed (and treated) increases the prob- abilities of transitioning to a worse stage, death or amputation.

Keywords: Multiple state duration model; endogenous treatment; discrete factors (search for similar items in EconPapers)
JEL-codes: C14 C41 C51 I12 (search for similar items in EconPapers)
Date: 2011-07
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:yor:hectdg:11/19

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