COUNTS WITH AN ENDOGENOUS BINARY REGRESSOR: A SERIES EXPANSION APPROACH

Andres Romeu () and Marcos Vera-Hernandez

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: We propose an estimator for count data regression models where a binary regressor is endogenously determined. This estimator departs from previous approaches by using a flexible form for the conditional probability function of the counts. Using a Monte Carlo experiment we show that our estimator improves the fit and provides a more reliable estimate of the impact of regressors on the count when compared to alternatives which do restrict the mean to be linear-exponential. In an application to the number of trips by households in the US, we find that the estimate of the treatment effect obtained is considerably different from the one obtained under a linear-exponential mean specification.

Keywords: Count data; Polynominal Poisson Expansions; Flexible Functional Form. (search for similar items in EconPapers)
JEL-codes: C35 C52 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2004-09
New Economics Papers: this item is included in nep-ecm
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Published by Ivie

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http://www.ivie.es/downloads/docs/wpasad/wpasad-2004-36.pdf Fisrt version / Primera version, 2004 (application/pdf)

Related works:
Journal Article: Counts with an endogenous binary regressor: A series expansion approach (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2004-36

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