Unobserved heterogeneity and censoring in the demand for health care
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URI: http://hdl.handle.net/10317/1205Share
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López Nicolás, ÁngelResearch Group
Grupo de I+D en Economía, Políticas Públicas y SaludKnowledge Area
Economía AplicadaSponsors
Financial support from Merck through the Centre de Recerca d’Economia i Salut is thankfully acknowledged.Publication date
1997-11Publisher
Universidad Pompeu Fabra. Departamento de Economía y EmpresaBibliographic Citation
LÓPEZ NICOLÁS. Ángel. Unobserved heterogeneity and censoring in the demand for health care. Working Papers, 240: 21, Noviembre 1997Keywords
Demanda de saludVariables latentes
Datos de panel
Salud
Microeconometría
Demand for health
Latent variables
Panel data
Abstract
In this paper we estimate a demand for private medical services equation based on the
tradition of the Grossman´s model of demand for health using data for a panel of
Spanish households. The econometric specification accounts for the censored nature of
the data, which arises from no participation and infrequency of purchases, and the
existence of unobserved heterogeneity, which arises from the non observability of
health stata. Our evidence suggests that ignoring these features can have a significant
impact on the size, sign and significance of the model estimates. The estimates for the
participation and consumption processes also suggest that the deduction of
expenditures on health care currently applicable in the Spanish tax system are positively
associated to income and fertility.
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