Directory

Joseph Vincent Terza

Joseph Vincent Terza

Professor of Economics
Department: Economics
(317) 274-4747
jvterza@iupui.edu
https://jvterza.pages.iu.edu
Cavanaugh Hall (CA) 509B

Bio

Biography

Professor Terza’s primary area of research is the development and application of econometric methods for health policy analysis, health economics and health services research in nonlinear regression contexts involving endogeneity. His paper on two-stage residual inclusion has been extremely influential. In fact, a distinguished health econometrician has noted that it “…changed the way health economists estimate models that are nonlinear and have an endogenous explanatory variable. These models are common and his methods are now widely used.” His main fields of interest in health policy include: the analysis of the labor market outcomes of individuals with spinal cord injury; the economic causes and consequences of substance abuse, the economics of nicotine and tobacco use; and the behavioral economics of obesity. His research has been supported by the National Institute on Disability and Rehabilitation Research, Agency for Healthcare Research and Quality, Substance Abuse Policy Research Program of the Robert Wood Johnson Foundation (RWJF), National Institute on Alcohol Abuse and Alcoholism, National Institute on Drug Abuse, National Institute of Child Health and Human Development, Commonwealth Fund, RWJF – Changes in Health Care Financing and Organization, and others. In the past he has served as Associate editor of the Journal of the American Statistical Association and currently serves on the editorial boards of Foundations and Trends in Econometrics and Health Services Research. He is also a member of the AcademyHealth Methods Council and the AcademyHealth Health Services Research Learning Consortium.

Education

Education

  • PhD Economics, University of Pittsburgh 1981
  • MA Economics, University of Pittsburgh 1979
  • BA Economics , St Vincent College 1974

Teaching

Teaching

Graduate Econometrics

Publications

Publications

Journal Articles (peer-reviewed):
Terza, J.V. (2024): “Standard Errors for Regression-Based Causal Effect Estimates in Economics Using Numerical Derivatives,” Computational Economics, forthcoming.
Shea, D.G., Terza, J.V., Stuart, B.C., and Briesacher, B. (2023): ‘Correction to “Estimating the Effects of Prescription Drug Coverage for Medicare Beneficiaries,”’ Health Services Research, forthcoming.
Shea, D.G., Terza, J.V., Stuart, B.C., and Briesacher, B. (2023): “Supporting Information for ‘Correction to “Estimating the effects of prescription drug coverage for medicare beneficiaries,’” Health Services Research, forthcoming online.
Terza, J.V. (2023): “Simpler Standard Errors for Two-Stage Optimization Estimators Revisited,” Stata Journal, 23, forthcoming.
Terza, J.V. (2023): “Supplementary Appendix to ‘Simpler Standard Errors for Two-Stage Optimization Estimators Revisited’,” Stata Journal, 23, forthcoming online.
Ye, Y., Cherpitel, C.J, Terza, J.V. and Kerr, W.C. (2021): “Quantifying Risk of Injury from Usual Alcohol Consumption: An Instrumental Variable Analysis,” Alcoholism: Clinical and Experimental Research, 45, 2029-2039.
Terza, J.V. (2020): “Regression-Based Causal Analysis from the Potential Outcomes Perspective,” Journal of Econometric Methods, 9, 1, pp. 20180030.  https://doi.org/10.1515/jem-2018-0030
Terza, J.V. (2018): “Two-Stage Residual Inclusion Estimation in Health Services Research and Health Economics,” Health Services Research, 53, 1890-1899.
Terza, J.V. (2018): “Supporting Information for ‘Two-Stage Residual Inclusion Estimation in Health Services Research and Health Economics,’” Health Services Research, 53, 1899, online.
Terza, J.V. (2017): “Two-Stage Residual Inclusion Estimation:  A Practitioners Guide to Stata Implementation,” the Stata Journal, 17, 916-938.
Terza, J.V. (2017): “Causal Effect Estimation and Inference Using Stata,” the Stata Journal, 939-961.
Terza, J.V. (2017): “Supplementary Appendices to: ‘Causal Effect Estimation and Inference Using Stata,’” the Stata Journal, 17, 916-938, online.
In Stata, Help > Search > Search net resources > Keywords: st0506.
Terza, J.V. (2016):  “Simpler Standard Errors for Two-Stage Optimization Estimators,” the Stata Journal, 16, 368-385.
Terza, J.V. (2016): “Inference Using Sample Means of Parametric Nonlinear Data Transformations,” Health Services Research, 51, 1109-1113.
Terza, J.V. (2016): “Supporting Information for ‘Inference Using Sample Means of Parametric Nonlinear Data Transformations,’” Health Services Research, 51, 1109-1113, online
Terza, J.V. (2015): “Threshold Specification and Parameter Identification in the Generalized Ordinal Probit Model,” Journal of Economic Surveys, 30, 54-59.
Krause, J.S., Terza, J.V., Cao, Y. and Clark, J. (2015): “Emergency Room Visits and Hospitalizations Among Participants with Spinal Cord Injury,” NeuroRehabilitation, 36, 313-321.
Kerr, W.C., Paterson, D., Greenfield, T.K., Snow-Jones, A., McGeary, K.A., Terza, J.V., and Ruhm, C.J. (2013):  “U.S. Alcohol Affordability and Real Taax Rates, 1950-2011,” American Journal of Preventive Medicine, 44, 459-464.
Ruhm, C.J., Snow-Jones, A., Kerr, McGeary, K.A., Kerr, W.C., Terza, J.V., Greenfield, T.K., and Pandian, R.S. (2012):  “What U.S. Data Should be Used to Measure the Price Elasticity of Demand for Alcohol?,” National Bureau of Economic Research Working Paper No. w17578, Journal of Health Economics, 31, 851-862.
Krause, J.S., Terza, J.V., Erten, M.Z., Focht, K.L., and Disumke, C.E. (2012):  “Prediction of Post-injury Employment and Percentage of Time Worked after Spinal Cord Injury,” Archives of Physical Medicine and Rehabilitation, 93, 373-375.
Dismuke, C.E., Krause, J.S., and  Terza, J.V (2011):  “Racial Disparities in Poverty Status Among Families of Individuals with Spinal Cord Injury,” Poverty & Public Policy, 3 (1), Article 9.
Krause, J.S., Terza, J.V. and Dismuke, C.E. (2010):  “Factors Associated with Labor Force Participation After Spinal Cord Injury,” Journal of Vocational Rehabilitation, 33, 89-99.
Krause, J.S., Terza, J.V., Saunders, L.L. and Dismuke, C.E. (2010):  “Delayed Entry into Employment after Spinal Cord Injury: Factors Related to Time to First Job,” Spinal Cord, 48, 487-491.
Knapp, C., Shenkman, E.A, Marcu, M., Madden, V., and Terza, J.V (2009):  “Pediatric Palliative Care: Describing Hospice Users and Identifying Factors that Affect Hospice Expenditures,” Journal of Palliative Medicine, 12, 223-229.
Terza, J.V. (2009): “Parametric Nonlinear Regression with Endogenous Switching,” Econometric Reviews, 28, 555-580.
Stuart, B.C, Doshi, J., and Terza, J.V. (2009): “Assessing the Impact of Drug Use on Hospital Costs,” Health Services Research, 44, 128-144.
Krause, J.S., Terza, J.V. and Dismuke, C.E. (2008):  “Earnings among People with Spinal Cord Injury,” Archives of Physical Medicine and Rehabilitation, 89, 1474-1481.
Terza, J., Basu, A. and Rathouz, P. (2008):  “Two-Stage Residual Inclusion Estimation:  Addressing Endogeneity in Health Econometric Modeling,” Journal of Health Economics, 27, 531-543.
Terza, J., Bradford, W.D. and Dismuke, C.E. (2008):  “The Use of Linear Instrumental Variables Methods in Health Services Research and Health Economics: A Cautionary Note,” Health Services Research, 43, 1102-1120.
Terza, J., Kenkel D.S., Lin, T., and Sakata, S. (2008):  1“Care-Giver Advice as a Preventive Measure for Drinking During Pregnancy: Zeros, Categorical Outcome Responses, and Endogeneity,” Health Economics, 17, 41-54.
Shea, D.G., Terza, J.V., Stuart, B.C., and Briesacher, B. (2007): “Estimating the Effects of Prescription Drug Coverage for Medicare Beneficiaries,” Health Services Research, 43, 933-949.
Shea, D.G., Terza, J.V., Stuart, B.C., and Briesacher, B. (2007): “Supporting Information for ‘Estimating the Effects of Prescription Drug Coverage for Medicare Beneficiaries’,” Health Services Research, 43, 933-949, online.
https://onlinelibrary-wiley-com.proxy.ulib.uits.iu.edu/action/downloadSupplement?doi=10.1111%2Fj.1475-6773.2006.00659.x&file=HESR%2B659%2Bsm.pdf
Terza, J. (2006):  “Estimation of Policy Effects Using Parametric Nonlinear Models:  A Contextual Critique of the Generalized Method of Moments,” Health Services and Outcomes Research Methodology, 6, 177-198.
Terza J. and Tsai, W. (2006):  “Censored Probit Estimation with Correlation near the Boundary:  A Useful Reparameterization,” Review of Applied Economics, 2, 1-12.
Krause, J.S., and Terza, J.V. (2006):  “Injury and Demographic Factors Predictive of Disparities in Earnings after Spinal Cord Injury,” Archives of Physical Medicine and Rehabilitation, 87, 1318-1326. (Best published paper award for 2006 by the Research Committee of the American Spinal Injury Association).
Terza, J. (2006):  “Optimal Discrete Prediction in Parametric Binary Response Models,” Economics Letters, 91, 72-75.
Pryor, C., and Terza, J. (2002):  “Are Going Concern Audit Opinions a Self-fulfilling Prophecy?” Advances in Quantitative Analysis of Finance and Accounting, 10, 89-116.
Terza, J. (2002):  “Alcohol Abuse and Employment: A Second Look,” Journal of Applied Econometrics, 17, 393-404.
Kozlowski, L., G., Strasser, Giovino, G., Erickson, P., and Terza, J. (2001):  “Applying the Risk/Use Equilibrium: Use Medicinal Nicotine Now for Harm Reduction,” Tobacco Control, 10, 201-203.
Kenkel, D., Terza, J. (2001):  “The Effect of Physician Advice on Alcohol Consumption:  Count Regression with an Endogenous Treatment Effect,” Journal of Applied Econometrics, 16, 165-184.
Terza, J. (1999):  “Estimating Endogenous Treatment Effects in Retrospective Data Analysis,” Value in Health, 2, 429-434.
Terza, J. (1998):  “Estimating Count Data Models with Endogenous Switching:  Sample Selection and Endogenous Treatment Effects,” Journal of Econometrics, 84, 129-154. [The Poisson sample selection method developed in this paper is programmed and packaged in Stata beginning with version 13® — see the Stata “heckpoisson” command.] [The Poisson endogenous treatment effect method developed in this paper is programmed and packaged in Stata beginning with version 13® — see the Stata “etpoisson” command.]
Coulson, E., Neslusan, C., Stuart, B., and Terza J. (1995):  “Estimating the Moral Hazard Effect of Supplemental Medical Insurance in the Demand for Prescription Drugs by the Elderly,” American Economic Review – Papers and Proceedings, 85, 122-126.
Okoruwa, A., Nourse, H., and Terza, J. (1994):  “Estimating Sales for Retail Centers:  An Application of the Poisson Gravity Model,” Journal of Real Estate Research, 9, 85-96. (1989 Grubb and Ellis manuscript prize for the best research paper on real estate market analysis presented at the annual meeting of the American Real Estate Society.).
Coughlin, C., Terza, J., and Arromdee, V. (1991):  “State Characteristics and the Location of Foreign Direct Investment Within the United States,” Review of Economics and Statistics, 73, 675-683.
Terza, J., Welland, U. (1991):  “A Comparison of Bivariate Normal Algorithms,” Journal of Statistical Computation and Simulation, 39, 115-127.
Terza, J., Wilson, P. (1990):  “Analyzing Frequencies of Several Types of Events:  A Mixed Multinomial-Poisson Approach,” Review of Economics and Statistics, 72, 108-115.
Coughlin, C., Terza, J., and Arromdee, V. (1990):  “State Government Effects on the Location of Foreign Direct Investment,” Regional Science Perspectives, 20, 194-207.
Coughlin, C., Terza, J., and Khalifah, N. (1989):  “Determinants of Escape Clause Petitions,” Review of Economics and Statistics, 71, 341-347.
Fishback, P., and Terza, J. (1989):  “Are Estimates of Sex Discrimination by Employers Robust:  The Use of Never-Marrieds,” Economic Inquiry, 27, 271-285. (Finalist for best article in Economic Inquiry award for 1989.)
Fu, T., Epperson, J., Terza, J., and Fletcher, S. (1988):  “Producer Attitudes Toward Peanut Marketing Alternatives:  An Application of Multivariate Probit Joint Estimation,” American Journal of Agricultural Economics, 70, 910-918.
Okoruwa, A., Terza, J., and Nourse, H. (1988):  “Estimating Patronization Shares for Urban Retail Centers:  An Extension of the Poisson Gravity Model,” Journal of Urban Economics, 24, 241-259.
Sinkey, J., Terza, J. and Dince, R. (1987):  “A Zeta Analysis of Failed Commercial Banks,” Quarterly Journal of Business and Economics, 26, 35-49.
Terza, J. (1987):  “Estimating Linear Models with Ordinal Qualitative Regressors,” Journal of Econometrics, 34, 275-291.
Fletcher, S., and Terza, J. (1986):  “Analyzing Farmers’ Selection of Available Marketing Alternatives Using the Multivariate Probit Model,” Canadian Journal of Agricultural Economics, 34, 243-252.
Hunt, J., Terza, J., White, R., and Moore, T. (1986):  “Wages, Union Membership, and Public Sector Bargaining Legislation:  Simultaneous Equations with an Ordinal Qualitative Regressor,” Journal of Labor Research, 12, 255-267.
Terza, J. (1986):  “Determinants of Household Electricity Demand:  A Two-Stage Probit Approach,” Southern Economic Journal, 52, 1131-1139.
Terza, J., and Okoruwa, A. (1985):  “An Algorithm for the Estimation of Poisson Regressions Involving Structural Change,” Communications in Statistics, B14, 853-866.
Terza, J. (1985):  “Econometric Models with Normal Polychotomous Selectivity,” Economics Letters, 19, 165-170.
Terza, J. (1985):  “A Tobit-Type Estimator for the Censored Poisson Regression Model,” Economics Letters, 18, 361-365. [Programmed and packaged in Stata beginning with version 14® — see the “cpoisson” command.]
Terza, J. (1985):  “Ordinal Probit:  A Generalization,” Communications in Statistics, A14, 1-11.
Terza, J. (1985):  “Reduced Form Trinomial Probit:  A Quantal Response Model without A Priori Restrictions,” Journal of Business and Economic Statistics, 3, 54-59.
DeLorme, C., Terza, J., and Wood, N. (1984):  “Inflation and Political Unrest in Developing Nations,” Economic Notes, 13, 76-84.
Terza, J., and Welch, W. (1982):  “Estimating Demand under Block Rates:  Electricity and Water,” Land Economics, 58, 181-188.
Book Chapters and Proceedings:
Terza, J.V., (2014): “Sample Selection Bias in Health Econometric Models,” Encyclopedia of Health Economics, edited by Tony Culyer, 298-301.
Terza, J.V., (2014): “Instrumental Variables:  Methods,” Encyclopedia of Health Economics, edited by Tony Culyer, 67-71.
Terza, J., and Welch, W. (1982): “Estimating Demand under Block Rates:  Electricity and Water,” Land Economics, 58, 181-188.  Reprinted in the Economics of Water Resources, Grafton, R.Q. ed., Cheltenham, UK:  Edward Elgar Publishing Ltd, 2008.
Terza, J. (1980): “Heckman’s Method Extended to Polychotomous Choice Models,” Proceedings of the Business and Economics Section of the American Statistical Association, 466-470.
Terza, J. (1980):  “A Proposed Estimator for Situations Involving Sample Selection Based on Polychotomous Choice,” Modeling and Simulation, 11, 491-495.
Terza, J. (1983): “A Two-Stage Estimator for Models with Ordinal Selectivity,” Proceedings of the Business and Economics Section of the American Statistical Association, 484-486.
Okoruwa, A., Terza, J., and Nourse, H. (1988):  “Estimating Patronization Shares for Urban Retail Centers:  An Extension of the Poisson Gravity Model,” Journal of Urban Economics, 24, 241-259.  Reprinted in John D. Benjamin, editor, Megatrends in Retail Real Estate, Research Issues in Real Estate, Vol.3, Boston:  Kluwer Academic Publishers, 1996, 81-99.
Terza, J. (February, 1999):  “Analyzing the Effects of Public Policy Using Nonexperimental Data: Applications in Health Economics,” Economic Directions, 9. Transcript of my Mckenna Lecture at St. Vincent College (see Invited Lecture below).
Terza, J. (July, 2012): “Simplified Standard Errors for Multi-Stage Regression-Based Estimators,” 2012 Stata Conference Proceedings, San Diego published at:
Terza, J. (November, 2014):  “Simplified Standard Errors for Multi-Stage Regression-Based Estimators:  Illustrations in Health Economics,” Keynote Address Mexican Stata Users Group Meeting Mexico City, Stata Conference Proceedings  published at:
Terza, J. (July, 2016):  “Two-Stage Residual Inclusion Estimation:  A Practitioners Guide to Stata Implementation,” Stata Conference Proceedings, Chicago published at:
Terza, J. (July, 2018):  “Even Simpler Standard Errors for Two-Stage Optimization Estimators:  Mata Implementation via the DERIV Command,” Stata Conference Proceedings, Columbus published at:
Terza, J. (July, 2019):  “Mata Implementation of Gauss-Legendre Quadrature in the M-Estimation Context: Correcting for Sample-Selection Bias in a Generic Nonlinear Setting,” Stata Conference Proceedings, Chicago published at:
Terza, J. and Zhang, A.  (July, 2020):  “Two-Dimensional Gauss-Legendre Quadrature: Seemingly Unrelated Dispersion-Flexible Count Regressions,” Presentation slides for Stata Conference published at:
Terza, J., Kazeminezhad, G, and Zhang, A.  (August, 2021): “Validating a User-Developed Bivariate Pseudo-Random Vector Generator,” Stata Conference Proceedings published at:
Zhang, A., Terza, J.V and James Fisher (August, 2022):  “bivpoisson: A Stata Command Estimating Seemingly Unrelated Count Data,” 2022 Stata Conference proceedings, Washington D.C,  published at

Awards

Awards

Keynote Speaker, Annual Meeting of the Canadian Health Economics Study Group, June 2012. Best published paper award for 2006 by the Research Committee of the American Spinal Injury Association (see Krause and Terza, 2006, under “Journal Articles” below). Grubb and Ellis manuscript prize for the best research paper on real estate market analysis presented at the annual meeting of the American Real Estate Society, 1989. (see Okoruwa, Nourse and Terza, 1994, under “Journal Articles” below). Finalist for best article in Economic Inquiry award for 1989 (see Fishback and Terza, 1989, under “Journal Articles” below)

Service

Service

Editorial Board Member, Foundations and Trends in Econometrics, 2003-present. Associate Editor, Health Services Research, 2008-present. Associate Editor, Journal of the American Statistical Association, 1989-1992. Member, AcademyHealth Methods Council, 2009-present. Member, AcademyHealth Health Services Research Consortium, 2011-present. Scientific Review Committee, American Society of Health Economists, 2006-2010. Scientific Review Committee, International Health Economics Association, 2005-2010. Memberships – International Health Economics Association, American Society of Health Economists. Coinvestigator, Developing Evidence to Inform Decisions about Effectiveness (DEcIDE) Center, University of Maryland (Bruce Stuart PI), funded by Agency for Healthcare Research and Quality, 2007-2010. Coinvestigator, DEcIDE-2 Center, University of Iowa (Elizabeth Chrischilles PI), funded by Agency for Healthcare Research and Quality, 2010-2013. DEcIDE Frameworks Workgroup, Agency for Healthcare Research and Quality, 2009-2010. Grant Reviewer, National Science Foundation, Economics Program, 2009. Grant Reviewer, Robert Wood Johnson Foundation, Substance Abuse Policy Research Program, 2006-present. Study Section — Health Services Research on Alcohol-Related Problems – National Institute on Alcohol Abuse and Alcoholism, July, 1997. Study Section – Health Systems Research – Agency for Healthcare Research and Quality, 2006-2011. Served on informal special emphasis review panel for the Agency for Healthcare Quality and Research, August, 2007. Study Section – Special Emphasis Panel — Partnerships for Sustainable Research and Dissemination of Evidence-based Medicine – Agency for Healthcare Research and Quality, September 20-21, 2012. Reviewer for Evidence Based Reviews in Urology. Critiqued paper titled “Use of Radical Cystectomy for Patients with Invasive Bladder Cancer,” published in the Journal of the National Cancer Institute, 2011.