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Assessing household health expenditure with Box-Cox censoring models

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Author Info
Jean-Paul Chaze (Department of Econometrics & Laboratory of Applied Economics, University of Geneva, Switzerland)
Abstract

In order to assess the combined presence of zero expenditures and a heavily skewed distribution of positive expenditures, the Box-Cox transformation with location parameter is used to define a set of models generalising the standard Tobit, Heckman selection and double-hurdle models. Extended flexibility with respect to previous specifications is introduced, notably regarding negative transformation parameters, which may prove necessary for medical expenditures, and corner-solution outcomes. An illustration is provided by the analysis of household health expenditure in Switzerland. Copyright © 2005 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1042
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 14 (2005)
Issue (Month): 9 ()
Pages: 893-907
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Handle: RePEc:wly:hlthec:v:14:y:2005:i:9:p:893-907

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

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    Other versions:
  2. Lankford, R Hamilton & Wyckoff, James H, 1991. "Modeling Charitable Giving Using a Box-Cox Standard Tobit Model," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 460-70, August. [Downloadable!] (restricted)
  3. Mullahy, John, 1998. "Much ado about two: reconsidering retransformation and the two-part model in health econometrics," Journal of Health Economics, Elsevier, vol. 17(3), pages 247-281, June. [Downloadable!] (restricted)
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  6. Huang, Cliff J & Grawe, Oliver R, 1980. "Functional Forms and the Demand for Meat in the United States: A Comment," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 144-46, February. [Downloadable!] (restricted)
  7. Chang, Hui-shyong, 1980. "Functional Forms and the Demand for Meat in the United States: A Reply," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 148-50, February. [Downloadable!] (restricted)
  8. Jones, Andrew M., 2000. "Health econometrics," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 6, pages 265-344 Elsevier. [Downloadable!] (restricted)
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  10. Jones, Andrew M & Yen, Steven T, 2000. "A Box-Cox Double-Hurdle Model," Manchester School, University of Manchester, vol. 68(2), pages 203-21, March. [Downloadable!] (restricted)
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  11. Jason Abrevaya, 2002. "Computing Marginal Effects In The Box-Cox Model," Econometric Reviews, Taylor and Francis Journals, vol. 21(3), pages 383-393. [Downloadable!] (restricted)
  12. Yen, S.T. & Dellenbarger, L.E. & Schupp, A.R., 1995. "Determinants Of Participation And Consumption: The Case Of Crawfish In South Louisiana," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(01), July. [Downloadable!]
  13. Manning, Willard G. & Mullahy, John, 2001. "Estimating log models: to transform or not to transform?," Journal of Health Economics, Elsevier, vol. 20(4), pages 461-494, July. [Downloadable!] (restricted)
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  1. Valerie Albouy & Laurent Davezies & Thierry Debrand, 2009. "Dynamic Estimation of Health Expenditure: A new approach for simulating individual expenditure," Working Papers DT20, IRDES institut for research and information in health economics, revised Jan 2009. [Downloadable!]
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