We present several modifications of the Poisson and negative binomial models for count data to accommodate cases in which the number of zeros in the data exceed what would typically be predicted by either model. The excess zeros can masquerade as overdispersion. We present a new test procedure for distinguishing between zero inflation and overdispersion. We also develop a model for sample selection which is analogous to the Heckman style specification for continuous choice models. An application is presented to a data set on consumer loan behavior in which both of these phenomena are clearly present.
Greene, G. (2008). Introduction to this special issue on problem-based learning in Asia. In Kaohsiung Journal of Medical Sciences (Vol. 24). Elsevier (Singapore) Pte Ltd. https://doi.org/10.1016/S1607-551X(08)70087-1