Economics at your fingertips  

Competing Risks Copula Models for Unemployment Duration: An Application to a German Hartz Reform

Lo Simon M.S., Gesine Stephan and Ralf Wilke
Additional contact information
Lo Simon M.S.: Lingnan University, Rm 218, Ho Sin Hang Building, Lingnan University, Hong Kong

Journal of Econometric Methods, 2017, vol. 6, issue 1, 20

Abstract: The copula graphic estimator (CGE) for competing risks models has received little attention in empirical research, despite having been developed into a comprehensive research method. In this paper, we bridge the gap between theoretical developments and applied research by considering a general class of competing risks copula models, which nests popular models such as the Cox proportional hazards model, the semiparametric multivariate mixed proportional hazards model (MMPHM), and the CGE as special cases. Analyzing the effects of a German Hartz reform on unemployment duration, we illustrate that the CGE imposes fewer restrictions on partial covariate effects than standard methods do. Differences are less evident when a more flexible difference-in-differences estimator is applied. It is also found that the MMPHM estimates react more strongly to the choice of the copula than the CGE in terms of the shape of the treatment effect function over time. Thus, the MMPHM produces less robust results in our application.

Keywords: Archimedean copula; frailty; policy evaluation (search for similar items in EconPapers)
JEL-codes: C34 C41 J64 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) ... -0005.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Journal of Econometric Methods from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2019-05-26
Handle: RePEc:bpj:jecome:v:6:y:2017:i:1:p:20:n:4