Count Data Models with Selectivity
Posted: 19 Nov 1996
Date Written: May 1996
This paper shows how truncated, censored, hurdled, zero inflated and underreported count models can be interpreted as models with selectivity. Until recently, such count data models have commonly imposed independence between the count generating mechanism and the selection mechanism. Such an assumption is unrealistic in most applications, and various models with endogenous selectivity (correlation between the count and the selection equations) are presented. The methods are illustrated in an application to labor mobility where the dependent variable is the number of individual job changes during a ten year period.
JEL Classification: C52
Suggested Citation: Suggested Citation