Nonparametric Kernel Estimation of the Impact of Tax Policy on the Demand for Private Health Insurance in Australia

Xiaodong Gong () and Jiti Gao

No 9265, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper is motivated by our attempt to answer an empirical question: how is private health insurance take-up in Australia affected by the income threshold at which the Medicare Levy Surcharge (MLS) kicks in? We propose a new difference de-convolution kernel estimator for the location and size of regression discontinuities. We also propose a bootstrapping procedure for estimating confidence bands for the estimated discontinuity. Performance of the estimator is evaluated by Monte Carlo simulations before it is applied to estimating the effect of the income threshold of Medicare Levy Surcharge on the take-up of private health insurance in Australia using contaminated data.

Keywords: error-in-variables; regression discontinuity; de-convolution kernel estimator; demand for private health insurance (search for similar items in EconPapers)
JEL-codes: C13 C14 C29 I13 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015-08
New Economics Papers: this item is included in nep-ger and nep-ias
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Published - published in: Australia & New Zealand Journal of Statistics, 2018, 60 (3), 374- 393

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https://docs.iza.org/dp9265.pdf (application/pdf)

Related works:
Working Paper: Nonparametric kernel estimation of the impact of tax policy on the demand for private health insurance in Australia (2017)
Working Paper: Nonparametric Kernel Estimation of the Impact of Tax Policy on the Demand for Private Health Insurance in Australia (2015)
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