What is the Double Hurdle model?

Answer 1

The Double Hurdle model is a statistical approach used to analyze data where two separate decisions or thresholds affect the outcome of interest, often applied in contexts like consumer behavior or health economics. It consists of two stages: the first hurdle determines whether the event occurs (e.g., purchase or participation), while the second hurdle evaluates the extent of the event (e.g., the amount purchased or the level of participation). This model is particularly useful for handling zero-inflated data, as it allows for the differentiation between individuals who do not engage at all and those who do, along with their levels of engagement. By modeling these two distinct processes, the Double Hurdle model provides more accurate insights into the underlying behavior compared to simpler models.