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Estimating the Demand for Health Care with Panel Data: A Semiparametric Bayesian Approach

  • Markus Jochmann
  • Roberto Leon-Gonzalez

    ()

    (Department of Economics, The University of Sheffield)

This paper is concerned with the problem of estimating the demand for health care with panel data. A random effects model is specifed in a semiparametric Bayesian fashion using a Dirichlet process prior. This results in a very exible mixture distribution with an in nite number of components for the random effects. Therefore, the model can be seen as a natural extension of prevailing latent class models. A full Bayesian analysis using Markov chain Monte Carlo (MCMC)simulation methods is discussed. The methodology is illustrated with an application using data from Germany.

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File URL: http://www.shef.ac.uk/content/1/c6/06/31/66/SERP2003005.pdf
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File URL: http://www.shef.ac.uk/content/1/c6/06/31/66/SERP2003005.pdf
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Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2003005.

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Length: 26 pages
Date of creation: Oct 2003
Date of revision: Oct 2003
Handle: RePEc:shf:wpaper:2003005
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  1. 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.
  2. Angel López-Nicolás, 1998. "Unobserved heterogeneity and censoring in the demand for health care," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 429-437.
  3. Andreas Million & Regina T. Riphahn & Achim Wambach, 2003. "Incentive effects in the demand for health care: a bivariate panel count data estimation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(4), pages 387-405.
  4. Deb, Partha & Trivedi, Pravin K, 1997. "Demand for Medical Care by the Elderly: A Finite Mixture Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 313-36, May-June.
  5. Chib, Siddhartha & Hamilton, Barton H., 2002. "Semiparametric Bayes analysis of longitudinal data treatment models," Journal of Econometrics, Elsevier, vol. 110(1), pages 67-89, September.
  6. Gurmu, Shiferaw, 1997. "Semi-Parametric Estimation of Hurdle Regression Models with an Application to Medicaid Utilization," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 225-43, May-June.
  7. 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.
  8. Sergi Jiménez-Mart�n & José M. Labeaga & Maite Mart�nez-Granado, 2002. "Latent class versus two-part models in the demand for physician services across the European Union," Health Economics, John Wiley & Sons, Ltd., vol. 11(4), pages 301-321.
  9. Elke Holst & Dean R. Lillard & Thomas A. DiPrete, 2001. "Proceedings of the 2000 Fourth International Conference of German Socio-Economic Panel Study Users (GSOEP 2000): Editorial Introduction," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 5-6.
  10. Chib, Siddhartha & Winkelmann, Rainer, 2001. "Markov Chain Monte Carlo Analysis of Correlated Count Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 428-35, October.
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