Per Andersen and Maja Perme have a paper currently available as a research report from the Department of Biostatistics, University of Copenhagen. The paper is a review of the use of pseudo-observations. Pseudo-observations have particular use in multi-state models for allowing covariates to affect transition probabilities directly. This is of particular use if the quantity of interest in an analysis is a transition probability rather than an intensity. Pseudo-residuals obtained from pseudo-observations can also be used to obtain goodness-of-fit diagnostics. The paper gives a good introduction to this promising area of investigation.
Update (08/09): The paper is now published in SMMR.
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