Measuring income equity in the demand for healthcare with finite mixture models

Galina Besstremyannaya

Applied Econometrics, 2017, vol. 46, 5-29

Abstract: The paper exploits panel data finite mixture (latent class) models to measure consumer equity in healthcare access and utilization. The finite mixture approach accounts for unobservable consumer heterogeneity, while generalized linear models address a retransformation problem of logged dependent variable. Using the data of the Japan Household Panel Survey (2009–2014), we discover that consumers separate into latent classes in the binary choice models for healthcare use and generalized linear models for outpatient/inpatient healthcare expenditure. The results reveal that healthcare access in Japan is pro-poor for the most sick consumers, while utilization of outpatient care is equitable with respect to disposable income.

Keywords: healthcare demand; equity; generalized linear models; latent class; finite mixture (search for similar items in EconPapers)
JEL-codes: G22 I10 I18 R22 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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