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Equity in Swedish Health Care Reconsidered: New Results based on the Finite Mixture Model

  • Gerdtham, Ulf-G.

    (Dept. of Economics, Stockholm School of Economics)

  • Trivedi, Pravin K.

    (Department of Economics, Indiana University)

This paper reconsiders the equity issue in Swedish health care utilisation previously analyzed by Gerdtham (Health Economics 6, 303-319, 1997) within the framework of the standard two-part model. Departing from the user/nonuser distinction, we use the more flexible framework of the finite mixture model that distinguishes between frequent/infrequent users. Our empirical results indicate that the finite mixture model fits the data better than the two-part model. The results indicate that income increases use among infrequent users in both physician and hospital care but that there is no such income effect among frequent users.

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Paper provided by Stockholm School of Economics in its series SSE/EFI Working Paper Series in Economics and Finance with number 365.

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Length: 21 pages
Date of creation: 15 Mar 2000
Date of revision:
Handle: RePEc:hhs:hastef:0365
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  1. Wagstaff, Adam & van Doorslaer, Eddy, 2000. "Chapter 34 Equity in health care finance and delivery," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 34, pages 1803-1862 Elsevier.
  2. Ulf- G. Gerdtham, 1997. "Equity in Health Care Utilization: Further Tests Based on Hurdle Models and Swedish Micro Data," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 303-319.
  3. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
  4. 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.
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