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A Low-key Social Insurance Reform - Treatment Effects for Back Pain Patients in Norway

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Author Info

  • Aakvik, Arild

    ()
    (University of Bergen, Department of Economics)

  • Holmås, Tor Helge

    ()
    (University of Bergen, Department of Economics)

  • Kjerstad, Egil

    ()
    (Institute for Research in Economics and Business Administration (SNF))

Abstract

This paper estimates treatment effects for back pain patients using observational data from a low-key social insurance reform in Norway. Using a latent variable model we estimate the average treatment effects (ATE), the average effect of treatment on the treated (TT), and the distribution of treatment effects for outpatient treatment at three different locations. To estimate these parameters and the distribution of treatment effects we use a discrete choice model with unobservables generated by a factor structure model. Distance to nearest hospital (in kilometers) is used as an instrument in estimating the different treatment effects. We find a positive effect of treatment of 6 percentage points on the probability of leaving sickness benefits after allowing for selection effects and full heterogeneity in treatment effects. We also find that there are sound arguments for increasing the outpatient program of treating back pain patients.

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Bibliographic Info

Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 07/02.

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Length: 25 pages
Date of creation: 15 Mar 2002
Date of revision:
Handle: RePEc:hhs:bergec:2002_007

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Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
Email:
Web page: http://www.uib.no/econ/en
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Related research

Keywords: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Project Evaluation; Social Discount Rate; General; Unemployment: Models; Duration; Incidence; and Job Search.;

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  1. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
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