Applying Beta-type Size Distributions to Healthcare Cost Regressions
AbstractThis paper extends the literature on modelling healthcare cost data by applying the Generalised Beta of the Second Kind (GB2) distribution to UK data. A quasi-experimental design, estimating models on a subset of the data and evaluating performance on another subset, is used to compare this distribution with its nested and limiting cases. We nd that the GB2 may be a useful tool for choosing an appropriate distribution to apply, with the Beta-2 (B2) distribution and Generalised Gamma (GG) distribution performing the best with this dataset.
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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 11/31.
Date of creation: Oct 2011
Date of revision:
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Web page: http://www.york.ac.uk/economics/postgrad/herc/hedg/
More information through EDIRC
Health econometrics; Generalised beta of the second kind; Generalised gamma; Skewed outcomes; Healthcare cost data;
Find related papers by JEL classification:
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-03 (All new papers)
- NEP-ECM-2012-01-03 (Econometrics)
- NEP-HEA-2012-01-03 (Health Economics)
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