Some practical issues in maximum simulated likelihood

Author(s):  
Vassilis A. Hajivassiliou
Author(s):  
Arne Risa Hole

This article describes the mixlogit Stata command for fitting mixed logit models by using maximum simulated likelihood.


Author(s):  
David M. Zimmer

Abstract This paper uses data from the Medical Expenditure Panel Survey to estimate the effect of COBRA on health care utilization among a sample of individuals who experience employment separation. The empirical specification employs a structural simultaneous equations model of insurance choice and utilization that is estimated by Maximum Simulated Likelihood. Results indicate that employment separators who elect COBRA appear to consume more health care compared to individuals who become temporarily uninsured. In addition, results do not indicate adverse selection into COBRA. Although COBRA enrollees consume more health care than temporary insurance losers, election appears to exhibit favorable selection with respect to physician utilization.


2015 ◽  
Vol 4 (1) ◽  
pp. 151-173 ◽  
Author(s):  
Robert J. Franzese ◽  
Jude C. Hays ◽  
Scott J. Cook

Spatial/spatiotemporal interdependence—that is, that outcomes, actions or choices of some unit-times depend on those of other unit-times—is substantively important and empirically ubiquitous in binary outcomes of interest across the social sciences. Estimating and interpreting binary-outcome models that incorporate such spatial/spatiotemporal dynamics directly is difficult and rarely attempted, however. This article explains the inferential challenges posed by spatiotemporal interdependence in binary-outcome models and recent advances in their estimation. Monte Carlo simulations compare the performance of one of these consistent and asymptotically efficient methods (maximum simulated likelihood, using recursive importance sampling) to estimation strategies naïve about (inter-) dependence. Finally, it shows how to calculate, in terms of probabilities of outcomes, the estimated spatial/spatiotemporal effects of (and response paths to) hypotheticals of substantive interest. It illustrates with an application to civil war in Sub-Saharan Africa.


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