IDEAS home Printed from https://ideas.repec.org/a/eee/csdana/v99y2016icp12-24.html
   My bibliography  Save this article

Identification of proportionality structure with two-part models using penalization

Author

Listed:
  • Fang, Kuangnan
  • Wang, Xiaoyan
  • Shia, Ben-Chang
  • Ma, Shuangge

Abstract

Data with a mixture distribution are commonly encountered. A special example is zero-inflated data, where a proportion of the responses takes zero values, and the rest are continuously distributed. Such data routinely arise in public health, biomedicine, and many other fields. Two-part modeling is a natural choice for zero-inflated data, where the first part of the model describes whether the responses are equal to zero, and the second part describes the continuously distributed responses. With two-part models, an interesting problem is to identify the proportionality structure of covariate effects. Such a structure can lead to more efficient estimates and also provide scientific insights into the underlying data-generating mechanisms. To identify the proportionality structure, we adopt a penalization method. Compared to the alternatives, notable advantages of this method include computational simplicity, solid statistical properties, and others. For inference, we adopt a bootstrap approach. The proposed method shows satisfactory performance in simulation and the analysis of two public health datasets.

Suggested Citation

  • Fang, Kuangnan & Wang, Xiaoyan & Shia, Ben-Chang & Ma, Shuangge, 2016. "Identification of proportionality structure with two-part models using penalization," Computational Statistics & Data Analysis, Elsevier, vol. 99(C), pages 12-24.
  • Handle: RePEc:eee:csdana:v:99:y:2016:i:c:p:12-24
    DOI: 10.1016/j.csda.2016.01.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167947316000037
    Download Restriction: Full text for ScienceDirect subscribers only.

    File URL: https://libkey.io/10.1016/j.csda.2016.01.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Manning, W. G. & Duan, N. & Rogers, W. H., 1987. "Monte Carlo evidence on the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 35(1), pages 59-82, May.
    2. P. Tseng, 2001. "Convergence of a Block Coordinate Descent Method for Nondifferentiable Minimization," Journal of Optimization Theory and Applications, Springer, vol. 109(3), pages 475-494, June.
    3. William Greene, 2009. "Models for count data with endogenous participation," Empirical Economics, Springer, vol. 36(1), pages 133-173, February.
    4. Massimiliano Bratti & Alfonso Miranda, 2011. "Endogenous treatment effects for count data models with endogenous participation or sample selection," Health Economics, John Wiley & Sons, Ltd., vol. 20(9), pages 1090-1109, September.
    5. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    6. Hai Liu & Kung‐Sik Chan, 2011. "Generalized Additive Models for Zero‐Inflated Data with Partial Constraints," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 38(4), pages 650-665, December.
    7. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    8. Kuangnan Fang & BenChang Shia & Shuangge Ma, 2012. "Health Insurance Coverage and Impact: A Survey in Three Cities in China," PLOS ONE, Public Library of Science, vol. 7(6), pages 1-8, June.
    9. Partha Deb & Murat K. Munkin & Pravin K. Trivedi, 2006. "Bayesian analysis of the two‐part model with endogeneity: application to health care expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 1081-1099, November.
    10. Jian Huang & Shuangge Ma & Huiliang Xie, 2006. "Regularized Estimation in the Accelerated Failure Time Model with High-Dimensional Covariates," Biometrics, The International Biometric Society, vol. 62(3), pages 813-820, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massimiliano Bratti & Alfonso Miranda, 2011. "Endogenous treatment effects for count data models with endogenous participation or sample selection," Health Economics, John Wiley & Sons, Ltd., vol. 20(9), pages 1090-1109, September.
    2. Massimiliano Bratti & Alfonso Miranda, 2010. "Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation," DoQSS Working Papers 10-05, Quantitative Social Science - UCL Social Research Institute, University College London, revised 10 Dec 2010.
    3. Koppenberg, Maximilian & Mishra, Ashok K. & Hirsch, Stefan, 2023. "Food Aid and Violent Conflict: A Review of Literature," IZA Discussion Papers 16574, Institute of Labor Economics (IZA).
    4. Antonello Maruotti & Valentina Raponi, 2012. "On Baseline Conditions For Zero-Inflated Longitudinal Count Data," Working Papers 0212, CREI Università degli Studi Roma Tre, revised 2012.
    5. John Mullahy, 1998. "Much Ado About Two: Reconsidering Retransformation and the Two-Part Model in Health Economics," NBER Technical Working Papers 0228, National Bureau of Economic Research, Inc.
    6. Woldemichael, Andinet & Gurara, Daniel Zerfu & Shimeles, Abebe, 2016. "Community-Based Health Insurance and Out-of-Pocket Healthcare Spending in Africa: Evidence from Rwanda," IZA Discussion Papers 9922, Institute of Labor Economics (IZA).
    7. Mullahy, John, 1998. "Much ado about two: reconsidering retransformation and the two-part model in health econometrics," Journal of Health Economics, Elsevier, vol. 17(3), pages 247-281, June.
    8. Koppenberg, Maximilian & Mishra, Ashok K. & Hirsch, Stefan, 2023. "Food aid and violent conflict: A review and Empiricist’s companion," Food Policy, Elsevier, vol. 121(C).
    9. Andinet Woldemichael & Daniel Gurara & Abebe Shimeles, 2019. "The Impact of Community Based Health Insurance Schemes on Out-of-Pocket Healthcare Spending: Evidence from Rwanda," IMF Working Papers 2019/038, International Monetary Fund.
    10. Ayaz, Muhammad & Jehan, Noor & Nakonieczny, Joanna & Mentel, Urszula & uz zaman, Qamar, 2022. "Health costs of environmental pollution faced by underground coal miners: Evidence from Balochistan, Pakistan," Resources Policy, Elsevier, vol. 76(C).
    11. Leigh J. Maynard & Ellen Goddard & John Conley, 2008. "Impact of BSE on Beef Purchases in Alberta and Ontario Quick‐Serve Restaurants," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 337-351, September.
    12. Daniel Biftu Bekalo & Dufera Tejjeba Kebede, 2021. "Zero-Inflated Models for Count Data: An Application to Number of Antenatal Care Service Visits," Annals of Data Science, Springer, vol. 8(4), pages 683-708, December.
    13. José M. R. Murteira & Mário A. G. Augusto, 2017. "Hurdle models of repayment behaviour in personal loan contracts," Empirical Economics, Springer, vol. 53(2), pages 641-667, September.
    14. Matloob Piracha & Stephane Mahuteau & Massimiliano Tani, 2010. "Selection Policy and Immigrants’ Remittance Behaviour," Studies in Economics 1003, School of Economics, University of Kent.
    15. David C Wheelock & Paul W Wilson, 2004. "Consolidation in US banking: Which banks engage in mergers?," Review of Financial Economics, John Wiley & Sons, vol. 13(1-2), pages 7-39.
    16. Jiang, Yuan & House, Lisa & Tejera, Christian & Percival, Susan S., 2015. "Consumption of Mushrooms: A double-hurdle Approach," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196902, Southern Agricultural Economics Association.
    17. Katharina Stepping, 2012. "The determinants of selection and allocation decisions for health assistance. Which role do health indicators play?," MAGKS Papers on Economics 201231, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    18. Veredas, David & Rodríguez Poo, Juan M., 2001. "On the (intradaily) seasonality and dynamics of a financial point process: a semiparametric approach," DES - Working Papers. Statistics and Econometrics. WS ws013321, Universidad Carlos III de Madrid. Departamento de Estadística.
    19. Zhang, Xuelin & Morissette, Rene, 2001. "Which Firms Have High Job Vacancy Rates in Canada?," Analytical Studies Branch Research Paper Series 2001176e, Statistics Canada, Analytical Studies Branch.
    20. Noltze, Martin & Schwarze, Stefan & Qaim, Matin, 2011. "Understanding the adoption of systemic innovations in smallholder agriculture: the System of Rice Intensification (SRI) in Timor Leste," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114604, European Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:csdana:v:99:y:2016:i:c:p:12-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/csda .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.