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.


Graduate Econometrics


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)


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. 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. 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): “Care-Giver Advice as a Preventive Measure for Drinking During Pregnancy: Zeros, Categorical Outcome Responses, and Endogeneity,” Health Economics, 17, 41-54. 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. 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. (1998): “Estimating Count Data Models with Endogenous Switching: Sample Selection and Endogenous Treatment Effects,” Journal of Econometrics, 84, 129-154. [Programmed and packaged in Stata 13® -- see the “etpoisson” procedure] 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. 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.


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.

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