Title

Identifiability of the misspecified split hazard models

Author Info

Sanjiv Jaggia, California Polytechnic State University - San Luis ObispoFollow

Recommended Citation

Postprint version. Published in Applied Economics, Volume 43, Issue 24, January 1, 2011, pages 3441-3447.

The definitive version is available at https://doi.org/10.1080/00036841003652422.

Abstract

Unlike standard models, a split population hazard model allows the exit probability to be less than one. Although conceptually attractive, split models are prone to identification problems. In the reduced form estimation of the hazard function, the influence of split may not be distinguishable from that of neglected heterogeneity. For illustration, I use Monte Carlo simulations to highlight the problem of interpreting the structural parameters of the split Weibull and the Weibull-gamma models.

Disciplines

Economics

Copyright

2011 Taylor & Francis.

Publisher statement

This is an electronic version of an article published in Applied Economics.