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    A zero-inflated ordered probit model, with an application to modelling tobacco consumption

    Access Status
    Fulltext not available
    Authors
    Harris, Mark
    Zhao, X.
    Date
    2007
    Type
    Journal Article
    
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    Citation
    Harris, M.N. and Zhao, X. 2007. A zero-inflated ordered probit model, with an application to modelling tobacco consumption. Journal of Econometrics. 141 (2): pp. 1073-1099.
    Source Title
    Journal of Econometrics
    DOI
    10.1016/j.jeconom.2007.01.002
    ISSN
    0304-4076
    Faculty
    Faculty of Business and Law
    School
    School of Economics, Finance and Property
    URI
    http://hdl.handle.net/20.500.11937/81800
    Collection
    • Curtin Research Publications
    Abstract

    Data for discrete ordered dependent variables are often characterised by "excessive" zero observations which may relate to two distinct data generating processes. Traditional ordered probit models have limited capacity in explaining this preponderance of zero observations. We propose a zero-inflated ordered probit model using a double-hurdle combination of a split probit model and an ordered probit model. Monte Carlo results show favourable performance in finite samples. The model is applied to a consumer choice problem of tobacco consumption indicating that policy recommendations could be misleading if the splitting process is ignored. © 2007 Elsevier B.V. All rights reserved.

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