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A Multiple State Duration Model with Endogenous Treatment

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  • Mroz, T.
  • Picone, G.

Abstract

This study develops a discrete multiple state duration model that al- lows for duration dependence, unmeasured heterogeneity, partial observ- ability of the state and endogenous time-varying treatment. Our econo- metric strategy has numerous potential empirical applications. We apply our duration model to the progression of diabetic neuropathy, a compli- cation of diabetes with four levels of progression, which if left untreated may lead to amputation. Our results show that the longer a person has diabetes without having being diagnosed (and treated) increases the prob- abilities of transitioning to a worse stage, death or amputation.

Suggested Citation

  • Mroz, T. & Picone, G., 2011. "A Multiple State Duration Model with Endogenous Treatment," Health, Econometrics and Data Group (HEDG) Working Papers 11/19, HEDG, c/o Department of Economics, University of York.
    • Handle: RePEc:yor:hectdg:11/19
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    References listed on IDEAS

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    7. Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
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    Cited by:

    1. Chatterji, Pinka & Joo, Heesoo & Lahiri, Kajal, 2017. "Diabetes and labor market exits: Evidence from the Health & Retirement Study (HRS)," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 100-110.

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    More about this item

    Keywords

    Multiple state duration model; endogenous treatment; discrete factors;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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