Modelling Tobacco Consumption with a Zero-Inflated Ordered Probit Model

Mark Harris and Xueyan Zhao

No 14/04, Monash Econometrics and Business Statistics Working Papers from Monash University, Department of Econometrics and Business Statistics

Abstract: Data for discrete ordered random variables are often characterised by "excessive" zero observations. Traditional ordered probit models have limited capacity in explaining the preponderance of zero observations, especially when the zeros may relate to two distinct situations of non-participation and infrequent participation (or consumption), for example. We propose a zero-inflated ordered probit (ZIOP) model using a double-hurdle combination of a split (probit) model and an ordered probit model which, potentially, relate to different sets of covariates. Monte Carlo results suggest that the new model performs well. Finally, the model is applied to a consumer choice problem of tobacco consumption.

Keywords: Ordered outcomes; discrete data; drug consumption; zero-inflated responses. (search for similar items in EconPapers)
JEL-codes: C3 D1 I1 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2004-08
New Economics Papers: this item is included in nep-dcm, nep-hea and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Modelling Tobacco Consumption with a Zero-Inflated Ordered Probit Model (2004)
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