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An econometric analysis of veterans’ health care utilization using two-part models

  • Kajal Lahiri

    ()

  • Guibo Xing

Based on the 1992 US National Survey of Veterans, we analyzed veterans’ inpatient and outpatient health care utilization patterns by estimating count data two-part hurdle models. We also identified factors that affect veterans’ choice of health care between VA and non-VA facilities using count data selection models. Not surprisingly, we found that health condition measures are the most important factors in determining veterans’ health care utilization. Gender, disability, and employment status are also significant. Veterans with lower socio-economic status, without other health insurance coverages, or living near VA health care facilities are more likely to use VA health care system for outpatient visits and inpatient admissions. Our study underscores the role of alternative sources of health care and insurance in discerning the true effects of the explanatory variables on an individual’s total demand for health care and its allocation between alternative providers. Copyright Springer-Verlag 2004

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File URL: http://hdl.handle.net/10.1007/s00181-003-0178-0
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Article provided by Springer in its journal Empirical Economics.

Volume (Year): 29 (2004)
Issue (Month): 2 (05)
Pages: 431-449

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Handle: RePEc:spr:empeco:v:29:y:2004:i:2:p:431-449
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  1. Winfried Pohlmeier & Volker Ulrich, 1995. "An Econometric Model of the Two-Part Decisionmaking Process in the Demand for Health Care," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 339-361.
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  5. Debra Sabatini Dwyer & Olivia S. Mitchell, 1998. "Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?," NBER Working Papers 6503, National Bureau of Economic Research, Inc.
  6. Frank Windmeijer & Joao Santos Silva, 1996. "Endogeneity in count data models; an application to demand for health care," IFS Working Papers W96/15, Institute for Fiscal Studies.
  7. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
  8. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
  9. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  10. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
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