Effects of Informal Family Care on Formal Health Care: Zero-Inflated Endogenous Count for Censored Response
AbstractWhether informal family health care is a substitute or complement for formal health care has been debated in the literature. If it is a substitute, then there is a scope to reduce formal health care cost by promoting informal family health care. Using Korean survey data for the elderly of age 65 or higher, this paper estimates the effect of informal family health care on formal health care, where the former is measured by the number of family health care givers and the latter is measured by the (logarithm of) formal health care expenditure. This task, however, poses a number of difficulties. The first is that the number of the family care givers is an endogenous count regressor. The second is that there seem to be too many zeros in the count (85%). The third is that the response variable also has a non-trivial proportion of zeros (14%). This paper overcomes these problems by combining a semiparametric estimator for a censored response with the idea of â€œzero-inflatedâ€ counts. The resulting two-stage procedure avoids strong parametric assumptions and behaves well computationally. Our main empirical finding is that informal family health care has a large substitute effect for diabetics that is statistically significant and large in magnitude, but the other effects are statistically insignificant for our given data size of about 3000
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 HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 11/10.
Date of creation: Jun 2011
Date of revision:
Contact details of provider:
Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
Web page: http://www.york.ac.uk/res/herc/research/hedg/
More information through EDIRC
informal health care; formal health care; count variable; zero-inflated Poisson; control function approach; censored model.;
This paper has been announced in the following NEP Reports:
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.:
- K. Bolin & B. Lindgren & P. Lundborg, 2008.
"Informal and formal care among single-living elderly in Europe,"
John Wiley & Sons, Ltd., vol. 17(3), pages 393-409.
- K. Bolin & B. Lindgren & P. Lundborg, 2007. "Informal and Formal Care among Single-living Elderly in Europe," Tinbergen Institute Discussion Papers 07-031/3, Tinbergen Institute.
- Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
- Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-60, November.
- Bonsang, Eric, 2009.
"Does informal care from children to their elderly parents substitute for formal care in Europe?,"
Journal of Health Economics,
Elsevier, vol. 28(1), pages 143-154, January.
- Eric Bonsang, 2008. "Does Informal Care from Children to their Elderly Parents Substitute for Formal Care in Europe?," CREPP Working Papers 0801, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
- Lee, Myoung-jae, 2012. "Treatment effects in sample selection models and their nonparametric estimation," Journal of Econometrics, Elsevier, vol. 167(2), pages 317-329.
- Charles, Kerwin Kofi & Sevak, Purvi, 2005. "Can family caregiving substitute for nursing home care?," Journal of Health Economics, Elsevier, vol. 24(6), pages 1174-1190, November.
- Van Houtven, Courtney Harold & Norton, Edward C., 2004. "Informal care and health care use of older adults," Journal of Health Economics, Elsevier, vol. 23(6), pages 1159-1180, November.
- Lee, Myoung-Jae, 1992. "Winsorized Mean Estimator for Censored Regression," Econometric Theory, Cambridge University Press, vol. 8(03), pages 368-382, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Rawlings).
If references are entirely missing, you can add them using this form.