A Generalized Two-Part Model for Fractional Response Variables with Excess Zeros

Konferenzbeitrag

The fractional probit (or fractional logit) model is used when the outcome variable is a fractional response variable, i.e. a variable taking a value between zero and one. In case of excess zeros, the fractional probit model might not be the optimal modeling device since this model does not predict zeros. As a solution, the two-part model has been proposed, which assumes different processes for having a (non-)zero outcome and, conditionally on having a non-zero outcome, the actual outcome. However, the two-part model assumes independence of these processes. This paper proposes a generalization of the two-part model which allows for dependence of these processes and which also nests the two-part model as a special case. A simulation study indicates that the proposed estimator performs well in finite samples. Two empirical examples illustrate that the model proposed in this paper improves upon the fractional probit and two-part model in terms of model fit and also leads to different marginal effects.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Microeconometrics ; No. B04-V2

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions ; Model Construction and Estimation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Schwiebert, Jörg ; Wagner, Joachim
• Ereignis: Veröffentlichung
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/113059
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ