Count Data Models: Econometric Theory and an Application to by Rainer Winkelmann

By Rainer Winkelmann

This booklet provides statistical tools for the research of occasions. the first concentration is on unmarried equation go part versions. The publication addresses either the method and the perform of the topic and it presents either a synthesis of a various physique of literature that hitherto used to be to be had principally in items, in addition to a contribution to the development of the technique, constructing numerous new effects and introducing new types. ranging from the traditional Poisson regression version as a benchmark, the motives, indicators and effects of misspecification are labored out. either parametric and semi-parametric possible choices are mentioned. whereas semi-parametric versions enable for powerful interference, parametric versions can establish positive factors of the underlying facts new release strategy.

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Additional resources for Count Data Models: Econometric Theory and an Application to Labor Mobility

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In particular, the distributions of the cumulative waiting times uniquely determine the distributions of the counts. This link can be exploited for deriving new count data distributions, and for obtaining a better understanding of count data models. In particular, a new interpretation can be given to the phenomena of over- and underdispersion. Consider events that occur randomly over time. The resulting count process {Nt, t > 0} can be transformed into a sequence Tk, k E IN of interarrival times between the (k- 1) and the k-th event.

For fixed T, NT is a count variable. 63) NT < n if and only if {)n > T Chapter 2. 64) = P(I'Jn > T) = 1- Fn(T), where Fn(T) is the cumulative density function of I'Jn. Further, P(NT = n) = P(NT < n + 1)- P(NT < n) = Fn(T)- Fn+t(T). 65) provides the fundamental relation between the distribution of waiting times and the distribution of counts. The probability distribution of NT can be obtained explicitly for all n from knowing the distributions of I'Jn. 1. Distributions for Waiting Times The duration of stay in one state is modeled by a non-negative continuous random variable T.

FJ is the natural parameter and ¢> a dispersion parameter. Differentiating the identity ~ [! 55) Jaj~J fJ) dx = J8£~~ fJ) f(x, fJ) dx =0 46 Chapter 2. ). ) = V(p,) The variance of X is the product of two components. ), depends on the natural parameter, and hence on the mean. It is called the variance function and, considered as a function of p,, is written V(p,). The variance function is multiplied by , the so called dispersion parameter. For instance, the normal distribution sets= a 2 and V(p,) = 1.

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