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Slide Presentation from the AHRQ 2007 Annual Conference

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  • 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*)

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