Heterogeneous effect of coinsurance rate on the demand for health care: a finite mixture approach
AbstractThe paper exploits finite mixture (latent class) models to account for consumer heterogeneity in estimating the effect of coinsurance rate on the demand for health care. The parametric analysis employs a two-part model, a Tobit model, and generalized linear models with latent classes. The non-parametric analysis uses matching estimators in each latent class to construct a control group of consumers and measure the average treatment effect of the natural experiment with a rise in nominal coinsurance rate. The paper exploits the 2000-2008 data of the Japanese Panel Survey of Consumers and the 2008 data of Japan Household Panel Survey. The estimations demonstrate a significant negative effect of nominal coinsurance rate on the demand for health care. The effect is primarily noticeable in the latent class of consumers with high health care demand, who constitute 21% of the sample. Our finding with the latent class models with Japanese data, where the assignment of insurance plans is exogenous, is similar to the results with the RAND Health Insurance Experiment data, where the assignment was randomized.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0163.
Length: 40 pages
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Postal: 117418 Russia, Moscow, Nakhimovsky pr., 47, office 720
Phone: +7 (495) 105 50 02
Fax: +7 (495) 105 50 03
Web page: http://www.cefir.ru
More information through EDIRC
Health insurance; coinsurance rate; panel data latent class model; average treatment effect; price elasticity; matching estimators;
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-HEA-2011-06-25 (Health Economics)
- NEP-IAS-2011-06-25 (Insurance Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schreyögg, Jonas & Grabka, Markus M., 2010.
"Copayments for Ambulatory Care in Germany: A Natural Experiment Using a Difference-in-Difference Approach,"
EconStor Open Access Articles,
ZBW - German National Library of Economics, pages 331-341.
- Jonas Schreyögg & Markus Grabka, 2010. "Copayments for ambulatory care in Germany: a natural experiment using a difference-in-difference approach," The European Journal of Health Economics, Springer, vol. 11(3), pages 331-341, June.
- Jonas Schreyögg & Markus M. Grabka, 2008. "Copayments for Ambulatory Care in Germany: A Natural Experiment Using a Difference-in-Difference Approach," Discussion Papers of DIW Berlin 777, DIW Berlin, German Institute for Economic Research.
- Schreyoegg, Jonas & Grabka, Markus M, 2008. "Copayments for Ambulatory Care in Germany: A Natural Experiment Using a Difference-in-Difference Approach," MPRA Paper 23035, University Library of Munich, Germany.
- Jonas Schreyögg & Markus M. Grabka, 2008. "Copayments for Ambulatory Care in Germany: A Natural Experiment Using a Difference-in-Difference Approach," SOEPpapers on Multidisciplinary Panel Data Research 96, DIW Berlin, The German Socio-Economic Panel (SOEP).
- 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.
- Nawata, Kazumitsu & Nitta, Ayako & Watanabe, Sonoko & Kawabuchi, Koichi, 2006. "An analysis of the length of stay and effectiveness of treatment for hip fracture patients in Japan: Evaluation of the 2002 revision of the medical service fee schedule," Journal of Health Economics, Elsevier, vol. 25(4), pages 722-739, July.
- Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
- Sergi Jiménez-Mart�n & José M. Labeaga & Maite Mart�nez-Granado, 2002. "Latent class versus two-part models in the demand for physician services across the European Union," Health Economics, John Wiley & Sons, Ltd., vol. 11(4), pages 301-321.
- Abadie, Alberto & Imbens, Guido W., 2011. "Bias-Corrected Matching Estimators for Average Treatment Effects," Journal of Business & Economic Statistics, American Statistical Association, vol. 29(1), pages 1-11.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julia Babich).
If references are entirely missing, you can add them using this form.