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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 ()
Holmås, Tor Helge () (Department of Economics, University of Bergen.)
Kjerstad, Egil

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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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Publisher Info
Paper provided by Department of Economics, University of Bergen in its series Working paper Series with number 0207.

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Length: 25 pages
Date of creation: 2002
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Handle: RePEc:uib:bereco:0207

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Related research
Keywords: Heterogeneous treatment effects discrete choice models back pain patients

Find related papers by JEL classification:
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
I10 - Health, Education, and Welfare - - Health - - - General
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - 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.
    Other versions:
  2. Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267. [Downloadable!] (restricted)
  3. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July. [Downloadable!] (restricted)
    Other versions:
  4. Arild Aakvik & James J. Heckman & Edward J. Vytlacil, 2000. "Treatment Effects for Discrete Outcomes when Responses to Treatment Vary Among Observationally Identical Persons: An Application to Norwegian ..," NBER Technical Working Papers 0262, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Heckman, James J & Honore, Bo E, 1990. "The Empirical Content of the Roy Model," Econometrica, Econometric Society, vol. 58(5), pages 1121-49, September. [Downloadable!] (restricted)
  6. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May. [Downloadable!] (restricted)
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