Partha Deb
;
Murat K. Munkin
;
Pravin K. Trivedi

bayesian analysis of the two-part model with endogeneity: application to health care expenditure (replication data)

This paper studies the effect of managed care on medical expenditure using a model in which the insurance status is assumed to be endogenous. Insurance plan choice is modeled through the multinomial probit model. The medical expenditure variable, the outcome of interest, has a significant proportion of zeros that are handled using the two-part model, extended to handle endogenous insurance. The estimation approach is Bayesian, based on the Gibbs Sampler. The model is applied to a sample of 20 460 individuals obtained from the Medical Expenditure Panel Survey. The results provide substantial evidence of selectivity.

Data and Resources

Suggested Citation

Deb, Partha; Munkin, Murat K.; Trivedi, Pravin K. (2006): Bayesian analysis of the two-part model with endogeneity: application to health care expenditure (replication data). Version: 1. Journal of Applied Econometrics. Dataset. http://dx.doi.org/10.15456/jae.2022319.0712610764