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Empirical Health Economics
This important collection gathers the most influential literature in the area of empirical health economics. Health economics provides empirical evidence to aid decision-making across a broad spectrum of issues in health and health care. This evidence is often derived from econometric methods. This title brings together landmark contributions to the development and application of these methods which span the field, ranging from structural models, models for health care costs and other microeconometric approaches, including bayesian methods, longitudinal data, applications to health technology assessment, along with field experiments and policy evaluation. Prefaced by an original introduction from the editor, this collection will be of interest to economic researchers and students as well as health scholar’s wishing to explore the development of modern econometrics applied to health policy.
More Information
Contributors
Contents
More Information
This important collection gathers the most influential literature in the area of empirical health economics. Health economics provides empirical evidence to aid decision-making across a broad spectrum of issues in health and health care. This evidence is often derived from econometric methods. This title brings together landmark contributions to the development and application of these methods which span the field, ranging from structural models, models for health care costs and other microeconometric approaches, including bayesian methods, longitudinal data, applications to health technology assessment, along with field experiments and policy evaluation. Prefaced by an original introduction from the editor, this collection will be of interest to economic researchers and students as well as health scholar’s wishing to explore the development of modern econometrics applied to health policy.
Contributors
39 articles, dating from 1969 to 2013
Contributors include: A. Aakvik, D. Almond, A. Basu, S.E. Black, P. Deb, A. Finkelstein, J. Geweke, J.S. Hoch, M. McClellan, W.G. Manning
Contributors include: A. Aakvik, D. Almond, A. Basu, S.E. Black, P. Deb, A. Finkelstein, J. Geweke, J.S. Hoch, M. McClellan, W.G. Manning
Contents
Contents:
Introduction Andrew M. Jones
PART I STRUCTURAL APPROACHES TO HEALTH AND HEALTH CARE
1. Richard Auster, Irving Leveson and Deborah Sarachek (1969), ‘The Production of Health, an Exploratory Study’, Journal of Human Resources, 4 (4), Autumn, 411–36
2. Mark R. Rosenzweig and T. Paul Schultz (1983), ‘Estimating a Household Production Function: Heterogenity, the Demand for Health Inputs, and Their Effects on Birth Weight’, Journal of Political Economy, 91 (5), October, 723–46
3. Gary S. Becker, Michael Grossman and Kevin M. Murphy (1994), ‘An Empirical Analysis of Cigarette Addiction’, American Economic Review, 84 (3), June, 396–418
4. Donna B. Gilleskie (1998), ‘A Dynamic Stochastic Model of Medical Care Use and Work Absence’, Econometrica, 66 (1), January, 1–45
5. Marcos Vera-Hernández (2003),’Structural Estimation of a Principal Agent Model: Moral Hazard in Medical Insurance’, RAND Journal of Economics, 34 (4), Winter, 670–93
6. Peter Arcidiacono, Holger Sieg and Frank Sloan (2007), ‘Living Rationally Under the Volcano? An Empirical Analysis of Heavy Drinking and Smoking’, International Economic Review, 48 (1), February, 37–65
PART II METHODS FOR HEALTH CARE COSTS
7. Naihua N. Duan, Willard G. Manning, Jr., Carl N. Morris and Joseph P. Newhouse (1983), ‘A Comparison of Alternative Models for the Demand for Medical Care’, Journal of Business and Economic Statistics, 1 (2), April, 115–26
8. Williard G. Manning (1998),’The Logged Dependent Variable, Heteroscedasticity, and the Retransformation Problem’, Journal of Health Economics, 17 (3), June, 283–95
9. David K. Blough, Carolyn W. Madden, and Mark C. Hornbrook (1999), ‘Modeling Risk Using Generalized Linear Models’, Journal of Health Economics, 18 (2), April, 153–71
10. Donna B. Gilleskie and Thomas A. Mroz (2004), ‘A Flexible Approach for Estimating the Effects of Covariates on Health Expenditures’, Journal of Health Economics, 23 (3), March, 391–418
11. Anirban Basu and Paul J. Rathouz (2005),’Estimating Marginal and Incremental Effects on Health Outcomes Using Flexible Link and Variance Function Models’, Biostatistics, 6 (1), January, 93–109
12. Willard G. Manning, Anirban Basu and John Mullahy (2005), ’Generalized Modelling Approaches to Risk Adjustment of Skewed Outcomes Data’ Journal of Health Economics, 24 (3), May, 465–88
13. Andrew M. Jones, James Lomas and Nigel Rice (2015),’ Healthcare Cost Regressions: Going Beyond the Mean to Estimate the Full Distribution’, Health Economics, 24 (9), April, 1192–212
PART III MICROECONOMETRIC METHODS APPLIED TO HEALTH
14. John Mullahy (1986),’Specification and Testing of Some Modified Count Data Models’, Journal of Econometrics, 33 (3), December, 341–65
15. Bryan Dowd, Roger Feldman, Steven Cassou and Michael Finch (1991), ‘Health Plan Choice and the Utilization of Health Care Services’, Review of Economics and Statistics, 73 (1), February, 85–93
16. Marcel Kerkhofs and Maarten Lindeboom (1995), ‘Subjective Health Measures and State Dependent Reporting Errors’, Health Economics, 4 (3), May–June, 221–35
17. Winfried Pohlmeier and Volker Ulrich (1995), ’An Econometric Model of the Two-Part Decisonmaking Process in the Demand for Health Care’, Journal of Human Resources, 30 (2), Spring, 339–61
18. Partha Deb and Pravin K. Trivedi (1997),’Demand for Medical Care by the Elderly: A Finite Mixture Approach’, Journal of Applied Econometrics, 12 (3), May/ June, 313–36
19. David M. Zimmer and Pravin K. Trivedi (2006), ‘Using Trivariate Copulas to Model Sample Selection and Treatment Effects: Application to Family Health Care Demand’, Journal of Business and Economics Statistics, 24 (1), January, 63–76
PART IV BAYESIAN APPROACHES
20. Gary Koop, Jacek Osiewalski and Mark F.J. Steel (1997),’Bayesian Efficiency Analysis through Individual Effects: Hospital Cost Frontiers’, Journal of Econometrics, 76 (1-2), February, 77–105
21. Barton H. Hamilton (1999),’HMO Selection and Medicare Costs: Bayesian MCMC Estimation of a Robust Panel Data Tobit Model with Survival’, Health Economics, 8 (5), July, 403–14
22. John Geweke, Gautam Gowrisankaran and Robert J. Town (2003),’Bayesian Inference for Hospital Quality in A Selection Model’,Econometrica, 71 (4), July, 1215–38
23. Partha Deb, Murat K. Munkin and Pravin K. Trivedi (2006),’Bayesian Analysis of the Two-Part Model with Endogeneity: Application to Health Care Expenditure’, Journal of Applied Econometrics, 21 (7), November, 1081–99
PART V LONGITUDINAL AND SPATIAL APPROACHES
24. José M. Labeaga (1999),’A Double-Hurdle Rational Addiction Model with Heterogeneity: Estimating the Demand for Tobacco’, Journal of Econometrics, 93 (1), November, 49–72
25. Paul Contoyannis, Andrew M. Jones and Nigel Rice (2004), ’The Dynamics of Health in the British Household Panel Survey’, Journal of Applied Econometrics, 19 (4), July–August, 473–503
26. Teresa Bago d’Uva (2006),’Latent Class Models for Utilisation of Health Care’, Health Economics, 15 (4), March, 329–43
27. Francesco Moscone, Martin Knapp and Elisa Tosetti (2007),’Mental Health Expenditure in England: A Spatial Panel Approach’, Journal of Health Economics, 26 (4), July, 842–64
PART VI ECONOMETRICS AND HEALTH TECHNOLOGY ASSESSMENT
28. Mark McClellan, Barbara J. McNeil and Joseph P. Newhouse, (1994), ‘Does More Intensive Treatment of Acute Myocardial Infarction in the Elderly Reduce Mortality?, Journal of the American Medical Association, 272 (11), September, 859–66
29. Jeffrey S. Hoch, Andrew H. Briggs and Andrew R. Willan (2002), ’Something Old, Something New, Something Borrowed and Something Blue: A Framework for the Marriage of Health Econometrics and Cost-Effectiveness Analysis’, Health Economics, 11 (5), January, 415–30
30. Anirban Basu, James J. Heckman, Salvador Navarro-Lozano and Sergio Urzua (2007),’Use of Instrumental Variables in the Presence of Heterogeneity and Self-Selection: An Application to Treatments of Breast Cancer Patients’, Health Economics, 16 (11), October, 1133–57
PART VII FIELD EXPERIMENTS
31. Willard G. Manning, Joseph P. Newhouse, Naihua N. Duan, Emmett B. Keeler and Arleen Leibowitz (1987),’Health Insurance and the Demand for Medical Care: Evidence from a Randomized Experiment’, American Economic Review, 77 (3), June, 251–77 [27]
32. Paul Gertler (2004), ‘Do Conditional Cash Transfers Improve Childs Health? Evidence from PROGRESA’s Control Randomized Experiment’, American Economic Review, 94 (2), May, 336–41
33. Amy Finkelstein, Sarah Taubman, Bill Wright, Mira Bernstein, Jonathan Gruber, Joseph P. Newhouse, Heidi Allen, Katherine Baicker, and the Oregon Health Study Group (2012), ‘The Oregon Health Insurance Experiment: Evidence From The First Year’, Quarterly Journal of Economics, 127 (3), August, 1057–106
PART VIII QUASI-EXPERIMENTS AND POLICY EVALUATION
34. David Card and Lara D. Shore-Sheppard (2004),’Using Discontinuous Eligibility Rules to Identify the Effects of the Federal Medicaid Expansions on Low-Income Children’, Review of Economics and Statistics, 86 (3), August, 752–66
35. Arild Aakvik, James J. Heckman and Edward J. Vytlacil (2005), ‘Estimating Treatment Effects for Discrete Outcomes when Responses to Treatment Vary: An Application to Norwegian Vocational Rehabilitation Programs’, Journal of Econometrics, 125 (1–2), April, 15–51
36. Gerard J. van den Berg, Maarten Lindeboom and France Portrait (2006),’Economic Conditions Early in Life and Individual Mortality’, American Economic Review, 96 (1), March, 290–302
37. Sandra E. Black, Paul J. Devereux and Kjell G. Salvanes (2007),’From The Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes’, Quarterly Journal of Economics, 122 (1), February, 409–39
38. Douglas Almond and Joseph J. Doyle Jr (2011),’After Midnight: A Regression Discontinuity Design in Length of Postpartum Hospital Stays’, American Economic Journal: Economic Policy, 3 (3), August, 1–34
39. Martin Gaynor, Rodrigo Moreno-Serra and Carol Propper (2013), ‘Death by Market Power: Reform, Competition, and Patient Outcomes in the National Health Service’, American Economic Journal: Economic Policy, 5 (4), November, 134–66
Index
Introduction Andrew M. Jones
PART I STRUCTURAL APPROACHES TO HEALTH AND HEALTH CARE
1. Richard Auster, Irving Leveson and Deborah Sarachek (1969), ‘The Production of Health, an Exploratory Study’, Journal of Human Resources, 4 (4), Autumn, 411–36
2. Mark R. Rosenzweig and T. Paul Schultz (1983), ‘Estimating a Household Production Function: Heterogenity, the Demand for Health Inputs, and Their Effects on Birth Weight’, Journal of Political Economy, 91 (5), October, 723–46
3. Gary S. Becker, Michael Grossman and Kevin M. Murphy (1994), ‘An Empirical Analysis of Cigarette Addiction’, American Economic Review, 84 (3), June, 396–418
4. Donna B. Gilleskie (1998), ‘A Dynamic Stochastic Model of Medical Care Use and Work Absence’, Econometrica, 66 (1), January, 1–45
5. Marcos Vera-Hernández (2003),’Structural Estimation of a Principal Agent Model: Moral Hazard in Medical Insurance’, RAND Journal of Economics, 34 (4), Winter, 670–93
6. Peter Arcidiacono, Holger Sieg and Frank Sloan (2007), ‘Living Rationally Under the Volcano? An Empirical Analysis of Heavy Drinking and Smoking’, International Economic Review, 48 (1), February, 37–65
PART II METHODS FOR HEALTH CARE COSTS
7. Naihua N. Duan, Willard G. Manning, Jr., Carl N. Morris and Joseph P. Newhouse (1983), ‘A Comparison of Alternative Models for the Demand for Medical Care’, Journal of Business and Economic Statistics, 1 (2), April, 115–26
8. Williard G. Manning (1998),’The Logged Dependent Variable, Heteroscedasticity, and the Retransformation Problem’, Journal of Health Economics, 17 (3), June, 283–95
9. David K. Blough, Carolyn W. Madden, and Mark C. Hornbrook (1999), ‘Modeling Risk Using Generalized Linear Models’, Journal of Health Economics, 18 (2), April, 153–71
10. Donna B. Gilleskie and Thomas A. Mroz (2004), ‘A Flexible Approach for Estimating the Effects of Covariates on Health Expenditures’, Journal of Health Economics, 23 (3), March, 391–418
11. Anirban Basu and Paul J. Rathouz (2005),’Estimating Marginal and Incremental Effects on Health Outcomes Using Flexible Link and Variance Function Models’, Biostatistics, 6 (1), January, 93–109
12. Willard G. Manning, Anirban Basu and John Mullahy (2005), ’Generalized Modelling Approaches to Risk Adjustment of Skewed Outcomes Data’ Journal of Health Economics, 24 (3), May, 465–88
13. Andrew M. Jones, James Lomas and Nigel Rice (2015),’ Healthcare Cost Regressions: Going Beyond the Mean to Estimate the Full Distribution’, Health Economics, 24 (9), April, 1192–212
PART III MICROECONOMETRIC METHODS APPLIED TO HEALTH
14. John Mullahy (1986),’Specification and Testing of Some Modified Count Data Models’, Journal of Econometrics, 33 (3), December, 341–65
15. Bryan Dowd, Roger Feldman, Steven Cassou and Michael Finch (1991), ‘Health Plan Choice and the Utilization of Health Care Services’, Review of Economics and Statistics, 73 (1), February, 85–93
16. Marcel Kerkhofs and Maarten Lindeboom (1995), ‘Subjective Health Measures and State Dependent Reporting Errors’, Health Economics, 4 (3), May–June, 221–35
17. Winfried Pohlmeier and Volker Ulrich (1995), ’An Econometric Model of the Two-Part Decisonmaking Process in the Demand for Health Care’, Journal of Human Resources, 30 (2), Spring, 339–61
18. Partha Deb and Pravin K. Trivedi (1997),’Demand for Medical Care by the Elderly: A Finite Mixture Approach’, Journal of Applied Econometrics, 12 (3), May/ June, 313–36
19. David M. Zimmer and Pravin K. Trivedi (2006), ‘Using Trivariate Copulas to Model Sample Selection and Treatment Effects: Application to Family Health Care Demand’, Journal of Business and Economics Statistics, 24 (1), January, 63–76
PART IV BAYESIAN APPROACHES
20. Gary Koop, Jacek Osiewalski and Mark F.J. Steel (1997),’Bayesian Efficiency Analysis through Individual Effects: Hospital Cost Frontiers’, Journal of Econometrics, 76 (1-2), February, 77–105
21. Barton H. Hamilton (1999),’HMO Selection and Medicare Costs: Bayesian MCMC Estimation of a Robust Panel Data Tobit Model with Survival’, Health Economics, 8 (5), July, 403–14
22. John Geweke, Gautam Gowrisankaran and Robert J. Town (2003),’Bayesian Inference for Hospital Quality in A Selection Model’,Econometrica, 71 (4), July, 1215–38
23. Partha Deb, Murat K. Munkin and Pravin K. Trivedi (2006),’Bayesian Analysis of the Two-Part Model with Endogeneity: Application to Health Care Expenditure’, Journal of Applied Econometrics, 21 (7), November, 1081–99
PART V LONGITUDINAL AND SPATIAL APPROACHES
24. José M. Labeaga (1999),’A Double-Hurdle Rational Addiction Model with Heterogeneity: Estimating the Demand for Tobacco’, Journal of Econometrics, 93 (1), November, 49–72
25. Paul Contoyannis, Andrew M. Jones and Nigel Rice (2004), ’The Dynamics of Health in the British Household Panel Survey’, Journal of Applied Econometrics, 19 (4), July–August, 473–503
26. Teresa Bago d’Uva (2006),’Latent Class Models for Utilisation of Health Care’, Health Economics, 15 (4), March, 329–43
27. Francesco Moscone, Martin Knapp and Elisa Tosetti (2007),’Mental Health Expenditure in England: A Spatial Panel Approach’, Journal of Health Economics, 26 (4), July, 842–64
PART VI ECONOMETRICS AND HEALTH TECHNOLOGY ASSESSMENT
28. Mark McClellan, Barbara J. McNeil and Joseph P. Newhouse, (1994), ‘Does More Intensive Treatment of Acute Myocardial Infarction in the Elderly Reduce Mortality?, Journal of the American Medical Association, 272 (11), September, 859–66
29. Jeffrey S. Hoch, Andrew H. Briggs and Andrew R. Willan (2002), ’Something Old, Something New, Something Borrowed and Something Blue: A Framework for the Marriage of Health Econometrics and Cost-Effectiveness Analysis’, Health Economics, 11 (5), January, 415–30
30. Anirban Basu, James J. Heckman, Salvador Navarro-Lozano and Sergio Urzua (2007),’Use of Instrumental Variables in the Presence of Heterogeneity and Self-Selection: An Application to Treatments of Breast Cancer Patients’, Health Economics, 16 (11), October, 1133–57
PART VII FIELD EXPERIMENTS
31. Willard G. Manning, Joseph P. Newhouse, Naihua N. Duan, Emmett B. Keeler and Arleen Leibowitz (1987),’Health Insurance and the Demand for Medical Care: Evidence from a Randomized Experiment’, American Economic Review, 77 (3), June, 251–77 [27]
32. Paul Gertler (2004), ‘Do Conditional Cash Transfers Improve Childs Health? Evidence from PROGRESA’s Control Randomized Experiment’, American Economic Review, 94 (2), May, 336–41
33. Amy Finkelstein, Sarah Taubman, Bill Wright, Mira Bernstein, Jonathan Gruber, Joseph P. Newhouse, Heidi Allen, Katherine Baicker, and the Oregon Health Study Group (2012), ‘The Oregon Health Insurance Experiment: Evidence From The First Year’, Quarterly Journal of Economics, 127 (3), August, 1057–106
PART VIII QUASI-EXPERIMENTS AND POLICY EVALUATION
34. David Card and Lara D. Shore-Sheppard (2004),’Using Discontinuous Eligibility Rules to Identify the Effects of the Federal Medicaid Expansions on Low-Income Children’, Review of Economics and Statistics, 86 (3), August, 752–66
35. Arild Aakvik, James J. Heckman and Edward J. Vytlacil (2005), ‘Estimating Treatment Effects for Discrete Outcomes when Responses to Treatment Vary: An Application to Norwegian Vocational Rehabilitation Programs’, Journal of Econometrics, 125 (1–2), April, 15–51
36. Gerard J. van den Berg, Maarten Lindeboom and France Portrait (2006),’Economic Conditions Early in Life and Individual Mortality’, American Economic Review, 96 (1), March, 290–302
37. Sandra E. Black, Paul J. Devereux and Kjell G. Salvanes (2007),’From The Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes’, Quarterly Journal of Economics, 122 (1), February, 409–39
38. Douglas Almond and Joseph J. Doyle Jr (2011),’After Midnight: A Regression Discontinuity Design in Length of Postpartum Hospital Stays’, American Economic Journal: Economic Policy, 3 (3), August, 1–34
39. Martin Gaynor, Rodrigo Moreno-Serra and Carol Propper (2013), ‘Death by Market Power: Reform, Competition, and Patient Outcomes in the National Health Service’, American Economic Journal: Economic Policy, 5 (4), November, 134–66
Index
