Sample selection correction in panel data models when selectivity is due to two sources
AbstractThis paper proposes a specification of Wooldridge's (1995) two step estimation method in which selectivity bias is due to two sources rather than one. The main objective of the paper is to show how the method can be applied in practice. The application concerns an important problem in health economics: the presence of adverse selection in the private health insurance markets on which there exists a large literature. The data for the empirical application is drawn from the 2003/2004 Medical Expenditure Panel Survey in conjunction with the 2002 National Health Interview Survey.
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Bibliographic InfoPaper provided by Institute of Public Policy and Public Choice - POLIS in its series POLIS Working Papers with number 137.
Length: 20 pages
Date of creation: Nov 2009
Date of revision:
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Web page: http://polis.unipmn.it
Other versions of this item:
- Cinzia Di Novi, 2009. "Sample Selection Correction in Panel Data Models When Selectivity Is Due to Two Sources," Economics Bulletin, AccessEcon, vol. 29(4), pages 2967-2980.
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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- Christian Dustmann & Mar�a Engracia Rochina-Barrachina, 2007. "Selection correction in panel data models: An application to the estimation of females' wage equations," Econometrics Journal, Royal Economic Society, vol. 10(2), pages 263-293, 07.
- Keeler, Emmett B & Newhouse, Joseph P & Phelps, C E, 1977. "Deductibles and the Demand for Medical Care Services: The Theory of a Consumer Facing a Variable Price Schedule under Uncertainty," Econometrica, Econometric Society, vol. 45(3), pages 641-55, April.
- Dustmann, Christian & Rochina-Barrachina, María Engracia, 2000. "Selection Correction in Panel Data Models: An Application to Labour Supply and Wages," IZA Discussion Papers 162, Institute for the Study of Labor (IZA).
- Marchese, Carla & Ramello, Giovanni B., 2010.
"In the beginning was the Word. Now is the Copyright,"
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140, Institute of Public Policy and Public Choice - POLIS.
- Marchese Carla & Ramello Giovanni B., 2011. "In the Beginning Was the Word. Now is the Copyright," Review of Law & Economics, De Gruyter, vol. 7(1), pages 271-289, October.
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