Modeling the relationship between health and health care expenditures using a latent Markov model
We investigate the dynamic relationship between several dimensions of health and health care expenditures for older individuals. Health data from the Longitudinal Aging Survey Amsterdam is combined with data on hospital and long term care use. We estimate a latent variable based jointly on observed health indicators and expenditures. Annual transition probabilities between states of the latent variable are estimated using a Markov model. States associated with good current health and low annual health care expenditures are not associated with lower cumulative health care expenditures over remaining lifetime. We conclude that, although the direct health care cost saving effect is limited, the considerable gain in healthy lifeyears can make investing in the improvement of health of the older population worthwhile.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Paul Fearnhead & Loukia Meligkotsidou, 2004. "Exact filtering for partially observed continuous time models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 66(3), pages 771-789.
- France Portrait & Maarten Lindeboom & Dorly Deeg, 2000. "The use of long-term care services by the Dutch elderly," Health Economics, John Wiley & Sons, Ltd., vol. 9(6), pages 513-531.
- Teresa Bago d’Uva, 2005.
"Latent class models for utilisation of health care,"
Health, Econometrics and Data Group (HEDG) Working Papers
05/01, HEDG, c/o Department of Economics, University of York.
- Teresa Bago d'Uva, 2006. "Latent class models for utilisation of health care," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 329-343.
- Bago d'Uva, Teresa & Jones, Andrew M., 2009.
"Health care utilisation in Europe: New evidence from the ECHP,"
Journal of Health Economics,
Elsevier, vol. 28(2), pages 265-279, March.
- Teresa Bago d’Uva & Andrew M. Jones, 2006. "Health care utilisation in Europe: new evidence from the ECHP," Health, Econometrics and Data Group (HEDG) Working Papers 06/09, HEDG, c/o Department of Economics, University of York.
- Brigitte Dormont & Michel Grignon & Hélène Huber, 2006.
"Health expenditure growth : reassessing the threat of ageing,"
- Brigitte Dormont & Michel Grignon & Hélène Huber, 2006. "Health expenditure growth: reassessing the threat of ageing," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 947-963.
- Huber, Hélène & Grignon, Michel & Dormont, Brigitte, 2006. "Health expenditure growth : reassessing the threat of ageing," Economics Papers from University Paris Dauphine 123456789/3881, Paris Dauphine University.
- Tom Van Ourti, 2004. "Measuring horizontal inequity in Belgian health care using a Gaussian random effects two part count data model," Health Economics, John Wiley & Sons, Ltd., vol. 13(7), pages 705-724.
- Peter Zweifel & Stefan Felder & Markus Meiers, 1999. "Ageing of population and health care expenditure: a red herring?," Health Economics, John Wiley & Sons, Ltd., vol. 8(6), pages 485-496.
- Agnes Lievre & Nicolas Brouard & Christopher Heathcote, 2003. "The Estimation Of Health Expectancies From Cross-Longitudinal Surveys," Mathematical Population Studies, Taylor & Francis Journals, vol. 10(4), pages 211-248.
- Willard G. Manning & John Mullahy, 1999.
"Estimating Log Models: To Transform or Not to Transform?,"
NBER Technical Working Papers
0246, National Bureau of Economic Research, Inc.
- Manning, Willard G. & Mullahy, John, 2001. "Estimating log models: to transform or not to transform?," Journal of Health Economics, Elsevier, vol. 20(4), pages 461-494, July.
- Teresa Bago d'Uva, 2005. "Latent class models for use of primary care: evidence from a British panel," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 873-892.
- Paul McNamee, 2004. "A comparison of the grade of membership measure with alternative health indicators in explaining costs for older people," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 379-395.
- Bram Wouterse & Bert R. Meijboom & Johan J. Polder, 2011. "The relationship between baseline health and longitudinal costs of hospital use," Health Economics, John Wiley & Sons, Ltd., vol. 20(8), pages 985-1008, 08.
- Liu, Lei & Strawderman, Robert L. & Cowen, Mark E. & Shih, Ya-Chen T., 2010. "A flexible two-part random effects model for correlated medical costs," Journal of Health Economics, Elsevier, vol. 29(1), pages 110-123, January.
- Frijters, Paul & Ulker, Aydogan, 2008.
"Robustness in health research: Do differences in health measures, techniques, and time frame matter?,"
Journal of Health Economics,
Elsevier, vol. 27(6), pages 1626-1644, December.
- Paul Frijters & Aydogan Ulker, 2008. "Robustness in Health Research: Do differences in health measures, techniques, and time frame matter?," NCER Working Paper Series 28, National Centre for Econometric Research.
- Duan, Naihua, et al, 1983. "A Comparison of Alternative Models for the Demand for Medical Care," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(2), pages 115-26, April.
- Wouterse, B. & Meijboom, B.R. & Polder, J.J., 2011. "The relationship between baseline health and longitudinal costs of hospital use," Other publications TiSEM bdedc33c-9737-4bfc-beee-0, Tilburg University, School of Economics and Management.
- Bruce A. Craig & Peter P. Sendi, 2002. "Estimation of the transition matrix of a discrete-time Markov chain," Health Economics, John Wiley & Sons, Ltd., vol. 11(1), pages 33-42.
- Deb, Partha & Trivedi, Pravin K., 2002. "The structure of demand for health care: latent class versus two-part models," Journal of Health Economics, Elsevier, vol. 21(4), pages 601-625, July.
- Linda Martin & Robert Schoeni & Patricia Andreski, 2010. "Trends in health of older adults in the United States: Past, present, future," Demography, Springer, vol. 47(1), pages S17-S40, March.
- Leonard J. Paas & Jeroen K. Vermunt & Tammo H. A. Bijmolt, 2007. "Discrete time, discrete state latent Markov modelling for assessing and predicting household acquisitions of financial products," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(4), pages 955-974.
- Michael Molla & James Lubitz, 2008. "Retrospective information on health status and its application for population health measures," Demography, Springer, vol. 45(1), pages 115-128, February.
- de Meijer, Claudine & Koopmanschap, Marc & d' Uva, Teresa Bago & van Doorslaer, Eddy, 2011. "Determinants of long-term care spending: Age, time to death or disability?," Journal of Health Economics, Elsevier, vol. 30(2), pages 425-438, March.
When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:32:y:2013:i:2:p:423-439. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.