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Modelling bivariate count distributions with finite mixture models: application to health care demand of married couples

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  • Xiaoyong Zheng
  • David Zimmer

Abstract

Count measures of health care utilization are often correlated with other measures of utilization. In addition, utilization measures display a high proportion of zero observations. This article attempts to accommodate both data features in one model, with an application to medical care usage of husbands and wives. A bivariate count representation is used to model dependence between husbands' and wives' utilizations, and a finite mixture specification accommodates the problem of excess zeros. Results show that married couples are characterized by two distinct subpopulations according to the intensity of utilization of the wife.

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  • Xiaoyong Zheng & David Zimmer, 2011. "Modelling bivariate count distributions with finite mixture models: application to health care demand of married couples," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1477-1483.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1477-1483
    DOI: 10.1080/00036840802600509
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    Cited by:

    1. Hendrik Schmitz, 2012. "More health care utilization with more insurance coverage? Evidence from a latent class model with German data," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4455-4468, December.

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