Slide Presentation from the AHRQ 2007 Annual Conference

Models

• Panel data tobit model
  • The distributions of PSIs are skewed
  • The value of PSIs is non-negative with a mass at 0
  • Tobit models have a conceptual advantage in analyzing data where the distribution of the dependent variable is normal above a limiting value
  • PSIit*= β0 + β1CAHit+ ∑β2Xit + ∑β3Zt + εit
  • PSIit= max (0, PSIit*)