Applying Beta-type Size Distributions to Healthcare Cost Regressions
This paper extends the literature on modelling healthcare cost data by applying the Generalised Beta of the Second Kind (GB2) distribution to UK data. A quasi-experimental design, estimating models on a subset of the data and evaluating performance on another subset, is used to compare this distribution with its nested and limiting cases. We nd that the GB2 may be a useful tool for choosing an appropriate distribution to apply, with the Beta-2 (B2) distribution and Generalised Gamma (GG) distribution performing the best with this dataset.
|Date of creation:||Oct 2011|
|Date of revision:|
|Contact details of provider:|| Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom|
Phone: (0)1904 323776
Fax: (0)1904 323759
Web page: http://www.york.ac.uk/economics/postgrad/herc/hedg/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Willard G. Manning & Anirban Basu & John Mullahy, 2003.
"Generalized Modeling Approaches to Risk Adjustment of Skewed Outcomes Data,"
NBER Technical Working Papers
0293, National Bureau of Economic Research, Inc.
- Manning, Willard G. & Basu, Anirban & Mullahy, John, 2005. "Generalized modeling approaches to risk adjustment of skewed outcomes data," Journal of Health Economics, Elsevier, vol. 24(3), pages 465-488, May.
- Willard G. Manning & Anirban Basu & John Mullahy, 2003. "Generalized Modeling Approaches to Risk Adjustment of Skewed Outcomes Data," Working Papers 0313, Harris School of Public Policy Studies, University of Chicago.
- Donna B. Gilleskie & Thomas A. Mroz, 2000. "Estimating the Effects of Covariates on Health Expenditures," NBER Working Papers 7942, National Bureau of Economic Research, Inc.
- Sun, Jiafeng & Frees, Edward W. & Rosenberg, Marjorie A., 2008. "Heavy-tailed longitudinal data modeling using copulas," Insurance: Mathematics and Economics, Elsevier, vol. 42(2), pages 817-830, April.
- Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 60(3), pages 364-78, June.
- McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-63, May.
- McDonald, James B. & Xu, Yexiao J., 1995.
"A generalization of the beta distribution with applications,"
Journal of Econometrics,
Elsevier, vol. 66(1-2), pages 133-152.
- McDonald, James B. & Xu, Yexiao J., 1995. "A generalization of the beta distribution with applications," Journal of Econometrics, Elsevier, vol. 69(2), pages 427-428, October.
- Anirban Basu & Bhakti V. Arondekar & Paul J. Rathouz, 2006. "Scale of interest versus scale of estimation: comparing alternative estimators for the incremental costs of a comorbidity," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1091-1107.
- Cummins, J. David & Dionne, Georges & McDonald, James B. & Pritchett, B. Michael, 1990. "Applications of the GB2 family of distributions in modeling insurance loss processes," Insurance: Mathematics and Economics, Elsevier, vol. 9(4), pages 257-272, December.
- Andrew Briggs & Richard Nixon & Simon Dixon & Simon Thompson, 2005. "Parametric modelling of cost data: some simulation evidence," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 421-428.
- Steven C. Hill & G. Edward Miller, 2010. "Health expenditure estimation and functional form: applications of the generalized gamma and extended estimating equations models," Health Economics, John Wiley & Sons, Ltd., vol. 19(5), pages 608-627.
- Parker, Simon C., 1999. "The generalised beta as a model for the distribution of earnings," Economics Letters, Elsevier, vol. 62(2), pages 197-200, February.
- Anirban Basu & Willard G. Manning & John Mullahy, 2004. "Comparing alternative models: log vs Cox proportional hazard?," Health Economics, John Wiley & Sons, Ltd., vol. 13(8), pages 749-765.
- McDonald, James B & Butler, Richard J, 1987. "Some Generalized Mixture Distributions with an Application to Unemployment Duration," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 232-40, May.
- Buntin, Melinda Beeuwkes & Zaslavsky, Alan M., 2004. "Too much ado about two-part models and transformation?: Comparing methods of modeling Medicare expenditures," Journal of Health Economics, Elsevier, vol. 23(3), pages 525-542, May.
When requesting a correction, please mention this item's handle: RePEc:yor:hectdg:11/31. 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)
If references are entirely missing, you can add them using this form.