EconPapers    
Economics at your fingertips  
 

Copula bivariate probit models: with an application to medical expenditures

Rainer Winkelmann

No 29, ECON - Working Papers from Department of Economics - University of Zurich

Abstract: The bivariate probit model is frequently used for estimating the effect of an endogenous binary regressor (the "treatment") on a binary health outcome variable. This paper discusses simple modifications 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 expen- diture, a model based on the Frank copula outperforms the standard bivariate probit model.

Keywords: Bivariate probit; binary endogenous regressor; Frank copula; Clayton copula (search for similar items in EconPapers)
JEL-codes: C35 I12 (search for similar items in EconPapers)
Date: 2011-09
New Economics Papers: this item is included in nep-ecm and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.zora.uzh.ch/id/eprint/51533/1/econwp029.pdf (application/pdf)

Related works:
Journal Article: COPULA BIVARIATE PROBIT MODELS: WITH AN APPLICATION TO MEDICAL EXPENDITURES (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zur:econwp:029

Access Statistics for this paper

More papers in ECON - Working Papers from Department of Economics - University of Zurich Contact information at EDIRC.
Bibliographic data for series maintained by Severin Oswald ().

 
Page updated 2025-03-22
Handle: RePEc:zur:econwp:029