A discrete random effects probit model with application to the demand for preventive care.

Abstract:

:I have developed a random effects probit model in which the distribution of the random intercept is approximated by a discrete density. Monte Carlo results show that only three to four points of support are required for the discrete density to closely mimic normal and chi-squared densities and provide unbiased estimates of the structural parameters and the variance of the random intercept. The empirical application shows that both observed family characteristics and unobserved family-level heterogeneity are important determinants of the demand for preventive care.

journal_name

Health Econ

journal_title

Health economics

authors

Deb P

doi

10.1002/hec.627

keywords:

subject

Has Abstract

pub_date

2001-07-01 00:00:00

pages

371-83

issue

5

eissn

1057-9230

issn

1099-1050

journal_volume

10

pub_type

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