Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation

Massimiliano Bratti and Alfonso Miranda

No 10-05, DoQSS Working Papers from Quantitative Social Science - UCL Social Research Institute, University College London

Abstract: In this paper we propose a method to estimate models in which an endogenous dichotomous treatment affects a count outcome in the presence of either sample selection or endogenous participation using maximum simulated likelihood. We allow for the treatment to have an effect on both the sample selection or the participation rule and the main outcome. Applications of this model are frequent in many fields of economics, such as health, labor, and population economics. We show the performance of the model using data from Kenkel and Terza (2001), which investigates the effect of physician advice on the amount of alcohol consumption. Our estimates suggest that in these data (i) neglecting treatment endogeneity leads to a perversely signed effect of physician advice on drinking intensity, (ii) neglecting endogenous participation leads to an upward biased estimator of the treatment effect of physician advice on drinking intensity.

Keywords: count data; drinking; endogenous participation; maximum simulated likelihood; sample selection; treatment effects (search for similar items in EconPapers)
JEL-codes: C35 I12 I21 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-05-21, Revised 2010-12-10
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation (2010)
Working Paper: Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation (2010)
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