In a Hurdle Model analysis, how can one work with one of the model variables that has complete (or nearly complete) separation in the binomial model?
Full Separation in Hurdle Model
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asked by anonymous 24.08.2018 / 07:47
1 answer
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Short answer
No. The likelihood function will not be maximized and this will affect the estimation of the logistic parameters of the model.
Answer Not So Short
It depends. You can handle complete separation in logistic regression if you use a penalized likelihood. There are several ways to do this in R, although none of them is implemented in the pscl package (at least to my knowledge).
Another easy way to deal with this is to leave the problematic variable out of the analysis.
A third alternative is, if the variable that generates the complete separation is categorical, combine it with other categorical variables, so that this makes sense in the context of your problem.
24.08.2018 / 20:34