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DEMAND FOR MEDICAL CARE BY THE ELDERLY: A FINITE MIXTURE APPROACH

✍ Scribed by PARTHA DEB; PRAVIN K. TRIVEDI


Publisher
John Wiley and Sons
Year
1997
Tongue
English
Weight
254 KB
Volume
12
Category
Article
ISSN
0883-7252

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✦ Synopsis


In this article we develop a ®nite mixture negative binomial count model that accommodates unobserved heterogeneity in an intuitive and analytically tractable manner. This model, the standard negative binomial model, and its hurdle extension are estimated for six measures of medical care demand by the elderly using a sample from the 1987 National Medical Expenditure Survey. The ®nite mixture model is preferred overall by statistical model selection criteria. Two points of support adequately describe the distribution of the unobserved heterogeneity, suggesting two latent populations, the healthy' and the ill' whose ®tted distributions dier substantially from each other.


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