The Importance of Sample Selection Bias in the Estimation of Medical Care Demand Equations

Mary Murphy

Eastern Economic Journal, 1987, vol. 13, issue 1, 19-29

Abstract: This paper examines the importance of sample-selection bias in the estimation of demand equations for physician office visits, hospital outpatient visits, and hospital inpatient days. A technique suggested by J. J. Heckman (1976) is used that tests for and, when necessary, corrects such bias. Sample-selection bias can occur because each equation is estimated on a subsample of only those who consumed that type of medical care. Sample-selections bias is found to be a significant problem when ordinary least squares is used to estimate the primary care demand equations, although only somewhat of a problem for the hospital inpatient days equation.

Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:13:y:1987:i:1:p:19-29

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