I'm doing program evaluation. I want to use the finite mixture model to test the hypothesis that different types of firms may exist. This is an endogenous determination of the number of different types that may exist. However, this is done only at one point in time. I have data across several years in which firm entry and firm attrition occurs, begging for some kind of survival analysis.
- Is there a way of performing a finite mixture model that accounts for firm survival from one period to the next?
- Or could you use a survival model within which the endogenous determination of firm types is couched?