Specification and Simulated Likelihood Estimation of a Non-normal Outcome Model with Selection: Application to Health Care Utilization

Partha Deb and Pravin Trivedi

No 02/5, Economics Working Paper Archive at Hunter College from Hunter College Department of Economics

Abstract: We develop a model specification and estimation framework that is applicable to many microeconometric models which fall into a treatment-outcome framework. We apply our methodology to examine the causal effect of man-aged care on the utilization of health care services. Specifically, we jointly model multinomial choice of insurance plans (treatment) and counts and binary choices of utilization (outcome) using a latent factor structure, enabling a distinction between selection on unobservables and observables. We apply maximum simulated likelihood techniques to estimate the parameters of our model and find that there are significant unobserved self-selection effects and that these effects substantially change the effects of insurance on utilization.

Pages: 35 pages
Date: 2002, Revised 2004
New Economics Papers: this item is included in nep-dcm, nep-ecm, nep-hea and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://econ.hunter.cuny.edu/wp-content/uploads/sit ... HunterEconWP02-5.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:htr:hcecon:02/5

Access Statistics for this paper

More papers in Economics Working Paper Archive at Hunter College from Hunter College Department of Economics 695 Park Avenue, New York, NY 10065. Contact information at EDIRC.
Bibliographic data for series maintained by Jonathan Conning ().