Econometric Estimation of Proportional Hazard Models

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Christopher J Ruhm, Jefferson-Pilot Excellence Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: When analyzing duration data, covariates are typically assumed to modify hazard rates through the use of the proportional hazard model, in which the baseline hazard is multiplied by some function of the regressors and associated parameters, g(•), to determine individual hazard rates. The specification for g(•) which is in virtually universal use, g(•) = exp(•), may be overly restrictive. This paper considers one alternative—setting g(•) equal to the cumulative density function of the standard normal distribution. The relative performance of this functional form for g(•), compared to the exponential transformation, is shown to depend on the parametrization of the baseline hazard rate.

Additional Information

Publication
Journal of Economics & Business, Vol. 45, No. 5, October 1993, 421-30
Language: English
Date: 1993
Keywords
Proportional hazard model, Econometric estimation, Nonemployment duration

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