A finite mixture model for multivariate counts under endogenous selectivity

M Alfò, A Maruotti, G Trovato - Statistics and Computing, 2011 - Springer
Statistics and Computing, 2011Springer
We describe a selection model for multivariate counts, where association between the
primary outcomes and the endogenous selection source is modeled through outcome-
specific latent effects which are assumed to be dependent across equations. Parametric
specifications of this model already exist in the literature; in this paper, we show how model
parameters can be estimated in a finite mixture context. This approach helps us to consider
overdispersed counts, while allowing for multivariate association and endogeneity of the …
Abstract
We describe a selection model for multivariate counts, where association between the primary outcomes and the endogenous selection source is modeled through outcome-specific latent effects which are assumed to be dependent across equations. Parametric specifications of this model already exist in the literature; in this paper, we show how model parameters can be estimated in a finite mixture context. This approach helps us to consider overdispersed counts, while allowing for multivariate association and endogeneity of the selection variable. In this context, attention is focused both on bias in estimated effects when exogeneity of selection (treatment) variable is assumed, as well as on consistent estimation of the association between the random effects in the primary and in the treatment effect models, when the latter is assumed endogeneous. The model behavior is investigated through a large scale simulation experiment. An empirical example on health care utilization data is provided.
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