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Proportional treatment effects for count response panel data: effects of binary exercise on health care demand

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Author Info

  • Myoung-Jae Lee

    (Department of Economics, Sungkyunkwan University, Chongro-gu, Seoul, South Korea)

  • Satoru Kobayashi

    (Asset Management Division I, The Mitsubishi Trust and Banking Corporation, Minato-ku, Tokyo, Japan)

Abstract

We define conditional and marginal treatment effects appropriate for count data, and then conduct an empirical analysis for the effects of exercise on health care demand using panel data from the Health Retirement Study. The response variables are office visits to doctors and hospitalization days, and the treatments of interest are light and vigorous exercises. We found that short-run light exercise increases health care demand by 3-5%, whereas long-run light exercise decreases it by 3-6%. We also found that short-run vigorous exercise decreases health care demand by 1-2%, whereas long-run vigorous exercise decreases it by 1-3%. However, many of these numbers are not statistically significantly different from zero. These findings suggest that it will be difficult to reduce health care cost much by encouraging people to do more exercise-at least in the short-run. Copyright © 2001 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.626
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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: 411-428

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Handle: RePEc:wly:hlthec:v:10:y:2001:i:5:p:411-428

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

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  1. Wooldridge, Jeffrey M., 1999. "Distribution-free estimation of some nonlinear panel data models," Journal of Econometrics, Elsevier, vol. 90(1), pages 77-97, May.
  2. Frank Windmeijer & Joao Santos Silva, 1996. "Endogeneity in count data models; an application to demand for health care," IFS Working Papers W96/15, Institute for Fiscal Studies.
  3. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-38, July.
  4. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 487-535, October.
  5. Winkelmann, Rainer & Zimmermann, Klaus F, 1995. " Recent Developments in Count Data Modelling: Theory and Application," Journal of Economic Surveys, Wiley Blackwell, vol. 9(1), pages 1-24, March.
  6. Deb, Partha & Trivedi, Pravin K, 1997. "Demand for Medical Care by the Elderly: A Finite Mixture Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 313-36, May-June.
  7. Myoung-jae Lee, 2000. "Median treatment effect in randomized trials," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 62(3), pages 595-604.
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Cited by:
  1. Sang-jun Lee & Myoung-jae Lee, 2005. "Analysis of job-training effects on Korean women," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 549-562.
  2. Fali Huang & Myoung-jae Lee, 2009. "Dynamic Treatment Effect Analysis of TV Effects on Child Cognitive Development," Discussion Paper Series 0906, Institute of Economic Research, Korea University.
  3. Majo, M.C. & Soest, A.H.O. van, 2011. "The Fixed-Effects Zero-Inflated Poisson Model with an Application to Health Care Utilization," Discussion Paper 2011-083, Tilburg University, Center for Economic Research.
  4. Teemu Lyytikäinen, 2007. "The Effect of Three-rate Property Taxation on Housing Construction," Discussion Papers 419, Government Institute for Economic Research Finland (VATT).
  5. Yuriy Pylypchuk & Julie Hudson, 2009. "Immigrants and the use of preventive care in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 18(7), pages 783-806.
  6. Myoung-Jae Lee, 2004. "Selection correction and sensitivity analysis for ordered treatment effect on count response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 323-337.

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