Binary choice models for rare events data: a crop insurance fraud application

C-Tier
Journal: Applied Economics
Year: 2005
Volume: 37
Issue: 7
Pages: 841-848

Authors (3)

Yufei Jin (not in RePEc) Roderick Rejesus (North Carolina State Universit...) Bertis Little (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study implements a recently proposed score test that could help guide insurance fraud researchers in deciding whether to use a logit or a probit model in predicting insurance fraud probabilities, especially when the occurrence of ones in the dependent variable is much less than zeros. The test is easily implemented in a crop insurance fraud context and seems to be a promising method that could be applicable to analysing and detecting potentially fraudulent claims in various lines of insurance.

Technical Details

RePEc Handle
repec:taf:applec:v:37:y:2005:i:7:p:841-848
Journal Field
General
Author Count
3
Added to Database
2026-01-29