Bayesian treatment effects due to a subsidized health program: the case of preventive health care utilization in Medellín (Colombia)

Andrés Ramírez–Hassan () and Rosember Guerra–Urzola ()
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Andrés Ramírez–Hassan: Universidad EAFIT
Rosember Guerra–Urzola: Universidad EAFIT
Authors registered in the RePEc Author Service: Andrés Ramírez Hassan ()

Empirical Economics, 2021, vol. 60, issue 3, No 15, 1477-1506

Abstract: Abstract We analyze the treatment effects due to patients’ status, covered or uncovered by the subsidized health program in Medellín (Colombia), on the number of preventive health care visits to physicians. We use a Bayesian endogenous switching model that allows interaction effects as well as endogeneity due to patients’ status. This framework allows the calculation of the posterior distributions of heterogeneous treatment effects and presents Bayesian learning of the covariance between the two potential outcomes, a relevant policy-maker parameter, even though we do not observe individuals in both states at the same time. We found that there are self-selection effects as well as moral hazard, which may imply adverse consequences for the health care system in Colombia.

Keywords: Endogenous switching; Ordered response; Potential outcome; Subsidized health program; Treatment effects (search for similar items in EconPapers)
JEL-codes: C11 H51 I13 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s00181-019-01796-0

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