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A discrete random effects probit model with application to the demand for preventive care

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  • Partha Deb

    (Department of Economics, Indiana University-Purdue University Indianapolis, IN, USA)

Abstract

I have developed a random effects probit model in which the distribution of the random intercept is approximated by a discrete density. Monte Carlo results show that only three to four points of support are required for the discrete density to closely mimic normal and chi-squared densities and provide unbiased estimates of the structural parameters and the variance of the random intercept. The empirical application shows that both observed family characteristics and unobserved family-level heterogeneity are important determinants of the demand for preventive care. Copyright © 2001 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.627
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 10 (2001)
Issue (Month): 5 ()
Pages: 371-383

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Handle: RePEc:wly:hlthec:v:10:y:2001:i:5:p:371-383

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Kim, Byung-Do & Blattberg, Robert C & Rossi, Peter E, 1995. "Modeling the Distribution of Price Sensitivity and Implications for Optimal Retail Pricing," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 13(3), pages 291-303, July.
  2. George J. Borjas & Glenn T. Sueyoshi, 1993. "A Two-Stage Estimator for Probit Models with Structural Group Effects," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0146, National Bureau of Economic Research, Inc.
  3. Lee, Lung-fei, 2000. "A numerically stable quadrature procedure for the one-factor random-component discrete choice model," Journal of Econometrics, Elsevier, Elsevier, vol. 95(1), pages 117-129, March.
  4. Keane, Michael, 1993. "Simulation estimation for panel data models with limited dependent variables," MPRA Paper 53029, University Library of Munich, Germany.
  5. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, Econometric Society, vol. 50(3), pages 761-64, May.
  6. Pudney, Stephen & Galassi, Francesco L & Mealli, Fabrizia, 1998. "An Econometric Model of Farm Tenures in Fifteenth-Century Florence," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 65(260), pages 535-56, November.
  7. Deb, Partha & Trivedi, Pravin K., 2002. "The structure of demand for health care: latent class versus two-part models," Journal of Health Economics, Elsevier, Elsevier, vol. 21(4), pages 601-625, July.
  8. Jain, Dipak C & Vilcassim, Naufel J & Chintagunta, Pradeep K, 1994. "A Random-Coefficients Logit Brand-Choice Model Applied to Panel Data," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 12(3), pages 317-28, July.
  9. Goffe, William L. & Ferrier, Gary D. & Rogers, John, 1994. "Global optimization of statistical functions with simulated annealing," Journal of Econometrics, Elsevier, Elsevier, vol. 60(1-2), pages 65-99.
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Citations

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Cited by:
  1. Jones, A.M, 2010. "Models For Health Care," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 10/01, HEDG, c/o Department of Economics, University of York.
  2. Teresa Bago d'Uva, 2006. "Latent class models for utilisation of health care," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 15(4), pages 329-343.
  3. NicolasR. Ziebarth, 2010. "Estimating Price Elasticities of Convalescent Care Programmes," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 120(545), pages 816-844, 06.
  4. Chun-Chih Chen & Yen-Ju Lin & Ying-Tzu Lin, 2013. "Awareness and utilization of preventive care services among the elderly under National Health Insurance," International Journal of Health Care Finance and Economics, Springer, Springer, vol. 13(3), pages 247-260, December.
  5. Óscar Lourenço & Carlota Quintal & Pedro Lopes Ferreira & Pedro Pita Barros, 2007. "A equidade na utilização de cuidados de saúde em Portugal: Uma avaliação baseada em modelos de contagem," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, Faculdade de Economia, Universidade de Coimbra, issue 25, pages 6-26, June.
  6. Paul Contoyannis & Andrew M. Jones & Roberto Leon-Gonzalez, 2004. "Using simulation-based inference with panel data in health economics," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 13(2), pages 101-122.
  7. Fabbri, Daniele & Monfardini, Chiara, 2009. "Rationing the public provision of healthcare in the presence of private supplements: Evidence from the Italian NHS," Journal of Health Economics, Elsevier, Elsevier, vol. 28(2), pages 290-304, March.
  8. Tian, Wei-Hua & Chen, Chin-Shyan & Liu, Tsai-Ching, 2010. "The demand for preventive care services and its relationship with inpatient services," Health Policy, Elsevier, Elsevier, vol. 94(2), pages 164-174, February.
  9. Bago d'Uva, Teresa & Jones, Andrew M., 2009. "Health care utilisation in Europe: New evidence from the ECHP," Journal of Health Economics, Elsevier, Elsevier, vol. 28(2), pages 265-279, March.
  10. Teresa Bago d'Uva, 2005. "Latent class models for use of primary care: evidence from a British panel," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 14(9), pages 873-892.

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