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A microeconometric analysis of Canadian health care utilization

  • Sisira Sarma

    (Elisabeth Bruyere Research Institute, Ottawa, Canada)

  • Wayne Simpson

    (Department of Economics, University of Manitoba, Winnipeg, Canada)

Understanding health care utilization is important to design efficient and effective health systems. Toward this end, we develop a relatively simple and intutively appealing microeconometric framework to analyse health care utilization and illustrate its use with recent Canadian microdata. We find that health care utilization consists of distinct stochastic processes requiring the use of two stochastic regression models. In particular, the latent class modelling framework is the superior statistical framework if the data permit modelling unobserved heterogeneity and overdispersion. In many instances, results differ for the classes of high and low users of health care services. Copyright © 2005 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 15 (2006)
Issue (Month): 3 ()
Pages: 219-239

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Handle: RePEc:wly:hlthec:v:15:y:2006:i:3:p:219-239
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