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A bivariate Poisson count data model using conditional probabilities
Authors:Peter Berkhout  Erik Plug
Institution:SEO Amsterdam Economics, University of Amsterdam, Roetersstraat 29, 1018 WB Amsterdam, The Netherlands;, Department of Economics, University of Amsterdam, Scholar, Tinbergen Institute and IZA, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands
Abstract:The applied econometrics of bivariate count data predominantly focus on a bivariate Poisson density with a correlation structure that is very restrictive. The main limitation is that this bivariate distribution excludes zero and negative correlation. This paper introduces a new model which allows for a more flexible correlation structure. To this end the joint density is decomposed by means of the multiplication rule in marginal and conditional densities. Simulation experiments and an application of the model to recreational data are presented.
Keywords:correlated count data  conditional modelling  bivariate Poisson distributions
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