Copula bivariate probit models: with an application to medical expenditures.

@article{Winkelmann2012CopulaBP,
  title={Copula bivariate probit models: with an application to medical expenditures.},
  author={Rainer Winkelmann},
  journal={Health economics},
  year={2012},
  volume={21 12},
  pages={1444-55}
}
The bivariate probit model is frequently used for estimating the effect of an endogenous binary regressor (the 'treatment') on a binary health outcome variable. This paper discusses simple modifications that maintain the probit assumption for the marginal distributions while introducing non-normal dependence using copulas. In an application of the copula bivariate probit model to the effect of insurance status on the absence of ambulatory health care expenditure, a model based on the Frank… CONTINUE READING

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