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Estimating Heterogeneous Take-up and Crowd-Out Responses to Current Medicaid Limits and Their Nonmarginal Expansions

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Abstract

We use a switching probit model and the income-limit-based structure of Medicaid eligibility for children to estimate treatment effects of Medicaid expansions not found in existing work on public insurance. In particular, we estimate rates of Medicaid take-up, private insurance coverage, and crowd-out for the currently eligible overall and for different demographic groups, and we estimate corresponding rates for children made eligible by a counterfactual nonmarginal increase in the Medicaid income limits. We find strikingly different rates across demographic groups, with individuals in traditionally less disadvantaged groups having a considerably lower response to the coverage for which they are eligible.

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File URL: http://web.williams.edu/Economics/wp/Ham_Ozbeklik_Shore-Sheppard_Jan2012.pdf
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Bibliographic Info

Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2012-05.

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Length: 44 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:wil:wileco:2012-05

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Keywords: Medicaid expansions; take-up; crowd-out; treatment effects; switching probit model; counterfactual policy analysis;

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  1. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
  2. Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
  3. Peter Pedroni, 2001. "Purchasing Power Parity Tests In Cointegrated Panels," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 727-731, November.
  4. Brighita Bercea & Robert B. Ekelund & Robert D. Tollison, 2005. "Cathedral Building as an Entry-Deterring Device," Kyklos, Wiley Blackwell, vol. 58(4), pages 453-465, November.
  5. David Canning & Peter Pedroni, 2008. "Infrastructure, Long-Run Economic Growth And Causality Tests For Cointegrated Panels," Manchester School, University of Manchester, vol. 76(5), pages 504-527, 09.
  6. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
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