IDEAS home Printed from https://ideas.repec.org/p/yor/hectdg/11-10.html
   My bibliography  Save this paper

Effects of Informal Family Care on Formal Health Care: Zero-Inflated Endogenous Count for Censored Response

Author

Listed:
  • Lee, M-J
  • Kim, Y-S

Abstract

Whether informal family health care is a substitute or complement for formal health care has been debated in the literature. If it is a substitute, then there is a scope to reduce formal health care cost by promoting informal family health care. Using Korean survey data for the elderly of age 65 or higher, this paper estimates the effect of informal family health care on formal health care, where the former is measured by the number of family health care givers and the latter is measured by the (logarithm of) formal health care expenditure. This task, however, poses a number of difficulties. The first is that the number of the family care givers is an endogenous count regressor. The second is that there seem to be too many zeros in the count (85%). The third is that the response variable also has a non-trivial proportion of zeros (14%). This paper overcomes these problems by combining a semiparametric estimator for a censored response with the idea of “zero-inflated†counts. The resulting two-stage procedure avoids strong parametric assumptions and behaves well computationally. Our main empirical finding is that informal family health care has a large substitute effect for diabetics that is statistically significant and large in magnitude, but the other effects are statistically insignificant for our given data size of about 3000

Suggested Citation

  • Lee, M-J & Kim, Y-S, 2011. "Effects of Informal Family Care on Formal Health Care: Zero-Inflated Endogenous Count for Censored Response," Health, Econometrics and Data Group (HEDG) Working Papers 11/10, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:11/10
    as

    Download full text from publisher

    File URL: https://www.york.ac.uk/media/economics/documents/herc/wp/11_10.pdf
    File Function: Main text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-1460, November.
    2. K. Bolin & B. Lindgren & P. Lundborg, 2008. "Informal and formal care among single-living elderly in Europe," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 393-409.
    3. Lee, Myoung-Jae, 1992. "Winsorized Mean Estimator for Censored Regression," Econometric Theory, Cambridge University Press, vol. 8(03), pages 368-382, September.
    4. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
    5. Van Houtven, Courtney Harold & Norton, Edward C., 2004. "Informal care and health care use of older adults," Journal of Health Economics, Elsevier, vol. 23(6), pages 1159-1180, November.
    6. Charles, Kerwin Kofi & Sevak, Purvi, 2005. "Can family caregiving substitute for nursing home care?," Journal of Health Economics, Elsevier, vol. 24(6), pages 1174-1190, November.
    7. Bonsang, Eric, 2009. "Does informal care from children to their elderly parents substitute for formal care in Europe?," Journal of Health Economics, Elsevier, vol. 28(1), pages 143-154, January.
    8. Lee, Myoung-jae, 2012. "Treatment effects in sample selection models and their nonparametric estimation," Journal of Econometrics, Elsevier, vol. 167(2), pages 317-329.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    informal health care; formal health care; count variable; zero-inflated Poisson; control function approach; censored model.;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:yor:hectdg:11/10. 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: (Jane Rawlings). General contact details of provider: http://edirc.repec.org/data/deyoruk.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.