Econometric Models for Count Data with an Application to the Patents-R & D Relationship
Abstract
This paper focuses on developing and adapting statistical models of counts (nonnegative integers) in the context of panel data and using them to analyze the relationship between patents and R & D expenditures. Since a variety of other economic data come in the form of repeated counts of some individual actions or events, the methodology should have wide applications. The statistical models we develop are applications and generalizations of the Poisson distribution. Two important issues are (i) Given the panel nature of our data, how can we allow for separate persistent individual (fixed or random) effects? (ii) How does one introduce the equivalent of disturbances-in-the-equation into the analysis of Poisson and other discrete probability functions? The first problem is solved by conditioning on the total sum of outcomes over the observed years, while the second problem is solved by introducing an additional source of randomness, allowing the Poisson parameter to be itself randomly distributed, and compounding the two distributions. Lastly, we develop a test statistic for the presence of serial correlation when fixed effects estimators are used in nonlinear conditional models.
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The DD results are robust to Poisson and negative binomial specifications that recognize the count nature of the crime data and fixed effects.
“For example, Poisson and negative binomial specifications that recognize both the count nature of the crime data and the presence of fixed effects (44) return results similar to those based on ordinary least squares estimates of Eq. 1 (table S6).”
From A community response approach to mental health and substance abuse crises reduced crime (2022) · cites this paper as [44]
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- Authors
- Hausman, J., Hall, B. H., & Griliches, Z.
- ORCID
- Hall, Bronwyn H.
- Venue
- Econometrica
- Publisher
- JSTOR
- Published
- 1984-07
- Volume
- 52
- Issue
- 4
- Pages
- 909
- ISSN
- 0012-9682 (ISSN-L)
- OpenAlex
- W3124567902
- Cited by
- 3,393
- References
- 1
- Citations by year
- 2026: 78 · 2025: 81 · 2024: 80 · 2023: 78 · 2022: 94 · 2021: 91 · 2020: 115 · 2019: 118 · 2018: 134 · 2017: 115 · 2016: 123 · 2015: 161 · 2014: 177 · 2013: 183 · 2012: 136
- FWCI
- 44.90
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Econometrica (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Spatial and Panel Data Analysis
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Bayesian Inference
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Intellectual Property and Patents
- Keywords
- count data models, Poisson regression, panel data, patents, R&D investment, fixed effects, random effects, serial correlation, conditional models, nonlinear models, overdispersion
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