A Disaggregate Negative Binomial Regression Procedure for Count Data Analysis

Management Science, Vol. 40, No. 3, pp. 405-417, 1994

14 Pages Posted: 6 Jun 2016

See all articles by Venkatram Ramaswamy

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business

Eugene Anderson

University of Michigan at Ann Arbor

Wayne S. DeSarbo

Pennsylvania State University

Date Written: March 1994

Abstract

Various research areas face the methodological problems presented by nonnegative integer count data drawn from heterogeneous populations. We present a disaggregate negative binomial regression procedure for analysis of count data observed for a heterogeneous sample of cross-sections, possibly over some fixed time periods. This procedure simultaneously pools or groups cross-sections while estimating a separate negative binomial regression model for each group. An E-M algorithm is described within a maximum likelihood framework to estimate the group proportions, the group-specific regression coefficients, and the degree of overdispersion in event rates within each derived group. The proposed procedure is illustrated with count data entailing nonnegative integer counts of purchases (events) for a frequently bought consumer good.

Keywords: negative binomial regression, count data, stochastic models, maximum likelihood, E-M algorithm

Suggested Citation

Ramaswamy, Venkatram and Anderson, Eugene and DeSarbo, Wayne S., A Disaggregate Negative Binomial Regression Procedure for Count Data Analysis (March 1994). Management Science, Vol. 40, No. 3, pp. 405-417, 1994, Available at SSRN: https://ssrn.com/abstract=2789854

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109-1234
United States
734-763-5932 (Phone)
734-936-0279 (Fax)

Eugene Anderson

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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