The use of linear instrumental variables methods in health services research and health economics: A cautionary note

Health Services Research

Volumn 43, Issue 3, 2008, Pages 1102-1120

  Terza, Joseph V ^a   Bradford, W David ^b   Dismuke, Clara E ^b  

^a UNIVERSITY OF FLORIDA   (United States)

^b MEDICAL UNIVERSITY OF SOUTH CAROLINA   (United States)

Author keywords

Econometrics; Health economics; Nonlinear models

Indexed keywords

ARTICLE; HEALTH ECONOMICS; HEALTH SERVICES RESEARCH; HEALTH SURVEY; NONLINEAR SYSTEM; OUTCOME ASSESSMENT; SIMULATION; SMOKING;

BIAS (EPIDEMIOLOGY); ECONOMICS, MEDICAL; HEALTH SERVICES RESEARCH; LINEAR MODELS; MODELS, ECONOMETRIC; UNITED STATES;

EID: 43049123495     PISSN: 00179124     EISSN: 14756773     Source Type: Journal    
DOI: 10.1111/j.1475-6773.2007.00807.x     Document Type: Article

References (66)

1. Alexandre, P. K. M. T. French. 2001 Labor Supply of Poor Residents in Metropolitan Miami, Florida: The Role of Depression and the Co-Morbid Effects of Substance Abuse Journal of Mental Health Policy Economics 4 : 161 73.
2. Alvarez, R. M. G. Glasgow. 1999 Two-Stage Estimation of Nonrecursive Choice Models Political Analysis 8 : 147 65.
3. Ashford, J. R. Sowden. 1970 Multivariate Probit Analysis Biometrics 26 : 535 46.
4. Averett, S., B. Duncan, D. Rees L. Argys. 2004 Race, Ethnicity, and Gender Differences in the Relationship between Substance Use and Adolescent Sexual Behavior Topics in Economic Analysis and Policy 4 : 1 32.
5. Bao, Y., N. Duan S. A. Fox. 2006 Is Some Provider Advice on Smoking Cessation Better Than No Advice? An Instrumental Variable Analysis of the 2001 Health Interview Survey Health Services Research 41 : 2114 35.
6. Basu, A. P. Rathouz. 2005 Estimating Marginal and Incremental Effects on Health Outcomes Using Flexible Link and Variance-Function Parameters Biostatistics 6 : 93 109.
7. Basur, O., C. J. Bradley, J. C. Gardiner C. Given. 2004 Testing and Correcting for Non-Random Selection Bias Due to Censoring: An Application to Medical Costs Health Services and Outcomes Research Methodology 4 : 93 107.
8. Beegle, K., R. Dehejia R. Gatti. 2005. "Why Should We Care about Child Labor? The Education, Labor Market, and Health Consequences of Child Labor." World Bank Policy Research Working Paper #3479.
9. Bhattacharya, J., D. Goldman D. McCaffrey. 2006 Estimating Probit Models with Self-Selected Treatments Statistics in Medicine 25 : 389 413.
10. Blundell, R. W. R. J. Smith. 1989 Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models Review of Economics and Statistics 56 : 37 58.
11. Blundell, R. W. R. J. Smith. 1993 Simultaneous Microeconometric Models with Censored or Qualitative Dependent Variables In Handbook of Statistics, Vol. 2, edited by G. S. Maddala, C. R. Rao H. D. Vinod, pp. 1117 43. Amsterdam : North Holland Publishers.
12. Bollen, K. A., D. K. Guilkey T. A. Mroz. 1995 Binary Outcomes and Endogenous Explanatory Variables: Tests and Solutions with an Application to the Demand for Contraceptive Use in Tunisia Demography 32 : 11 131.
13. Box, G. E. P. D. R. Cox. 1964 An Analysis of Transformations Journal of the Royal Statistical Society-Series B 26 : 211 52.
14. Bradford, W. D. 2003 Pregnancy and the Demand for Cigarettes American Economic Review 93 : 1752 63.
15. Brooks, J. M., E. A. Chrischilles, S. D. Scott S. S. Chen-Hardee. 2003 Was Breast Conserving Surgery Underutilized for Early Stage Breast Cancer? Instrumental Variables Evidence for Stage II Patients from Iowa Health Services Research 38 : 1385 402.
16. Brooks, J. M., C. P. Irwing, L. G. Hunsicker, M. J. Flanigan, E. A. Chrischilles J. E. Pendergast. 2006 Effect of Dialysis Center Profit-Status on Patient Survival: A Comparison of Risk-Adjustment and Instrumental Variables Approaches Health Services Research 41 : 2267 89.
17. Burnett, N. J. 1997 Gender Economics Courses in Liberal Arts Colleges Journal of Economic Education 28 : 369 77.
18. Cawley, J. 2004 The Impact of Obesity on Wages Journal of Human Resources 39 : 452 74.
19. DeSimone, J. 2002 Illegal Drug Use and Employment Journal of Labor Economics 20 : 952 77.
20. Dickie, M. 2005 Parental Behavior and the Value of Children's Health: A Health Production Approach Southern Economic Journal 71 : 855 72.
21. Duan, N. 1983 Smearing Estimate: A Nonparametric Retransformation Method Journal of the American Statistical Association 78 : 605 10.
22. Frances, C. D., M. G. Shlipak, H. Noguchi, P. A. Heidenriech M. McClellan. 2000 Does Physician Specialty Affect the Survival of Elderly Patients with Myocardial Infarction Health Services Research 35 : 1093 116.
23. Geweke, J., G. Gowrisankaran R. Town. 2003 Bayesian Inference for Hospital Quality in a Selection Model Econometrica 71 : 1215 38.
24. Gibson, T. B., T. L. Mark, K. Axelsen, O. Basur, D. A. Rublee K. A. McGuigan. 2006 Impact of Statin Copayments on Adherence and Medical Care Utilization and Expenditures American Journal of Managed Care 12 : SP11 19.
25. Gowrisankaran, G. R. Town. 1999 Estimating the Quality of Care in Hospitals Using Instrumental Variables Journal of Health Economics 18 : 747 67.
26. Grabowski, D. R. Hirth. 2003 Competitive Spillovers across Non-Profit and For-Profit Nursing Homes Journal of Health Economics 22 : 1 22.
27. Greene, W. H. 2003. Econometric Analysis, 5th Edition. New Jersey : Prentice Hall.
28. Hansen, L. P. 1982 Large Sample Properties of Generalized Method of Moments Estimators Econometrica 50 : 1029 54.
29. Kenkel, D. J. Terza. 2001 The Effect of Physician Advice on Alcohol Consumption: Count Regression with an Endogenous Treatment Effect Journal of Applied Econometrics 16 : 165 84.
30. Koc, C. 2005 Health-Specific Moral Hazard Effects Southern Economic Journal 72 : 98 118.
31. Lee, L. 1979 Identification and Estimation in Binary Choice Models with Limited 'Censored' Dependent Variables Econometrica 47 : 977 95.
32. Lee, L. 1981 Simultaneous Equations Models with Discrete and Censored Dependent Variables Chapter 9. In Structural Analysis of Discrete Data with Econometric Applications, edited by C. Manski D. McFadden, pp. 346 64. Cambridge, MA : MIT Press.
33. Lo Sasso, A. T. T. C. Buchmeuller. 2004 The Effect of the State Children's Health Insurance Program on Health Insurance Coverage Journal of Health Economics 23 : 1059 82.
34. Malkin, J. D., M. S. Broder E. Keeler. 2000 Do Longer Postpartum Stays Reduce Newborn Readmissions? Analysis Using Instrumental Variables Health Services Research 35 : 1135 58.
35. McClellan, M., B. J. McNeil J. P. Newhouse. 1994 Does More Intensive Treatment of Acute Myocardial Infarction in the Elderly Reduce Mortality: Analysis Using Instrumental Variables Journal of the American Medical Association 272 : 859 66.
36. McGarrity, J. P. D. Sutter. 2000 A Test of the Structure of PAC Contracts: An Analysis of House Gun Control Votes in the 1980s Southern Economic Journal 677 : 41 63.
37. Moran, J. K. Simon. 2006 Income and the Use of Prescription Drugs by the Elderly: Evidence from The Notch Cohorts Journal of Human Resources 41 : 411 32.
38. Mroz, T. A., K. A. Bollen, I. S. Speizer D. J. Mancini. 1999 Quality, Accessibility, and Contraceptive Use in Rural Tanzania Demography 36 : 23 40.
39. Mullahy, J. 1985. "Cigarette Smoking: Habits, Health Concerns, and Heterogeneous Unobservables in a Microeconometric Analysis of Consumer Demand." Unpublished Dissertation, University of Virginia.
40. Mullahy, J. 1997 Instrumental-Variable Estimation of Count Data Models: Applications to Models of Cigarette Smoking Behavior Review of Economics and Statistics 79 : 586 93.
41. Mullahy, J. J. Sindelar. 1996 Employment, Unemployment, and Problem Drinking Journal of Health Economics 15 : 409 34.
42. Neslusan, C. A., T. R. Hylan, R. L. Dunn J. Donoghue. 1999 Controlling for Systematic Selection in Retrospective Analyses: An Application to Fluoxetine and Sertraline Prescribing in the United Kingdom Value in Health 2 : 435 45.
43. Newey, W. K. 1987 Efficient Estimation of Limited Dependent Variable Models with Endogenous Explanatory Variables Journal of Econometrics 36 : 231 50.
44. Norton, E. C., R. C. Lindrooth S. T. Ennett. 1998 Controlling for the Endogeneity of Peer Substance Use on Adolescent Alcohol and Tobacco Use Health Economics 7 : 439 53.
45. Norton, E. C. C. H. Van Houtven. 2006 Intervivos Transfers and Exchange Southern Economic Journal 73 : 157 72.
46. Petrin, A. K. Train. 2006. "Control Function Corrections for Unobserved Factors in Differentiated Product Models," Working Paper.
47. Rees, D., L. Argys S. Averett. 2001 New Evidence on the Relationship between Substance Use and Adolescent Sexual Behavior Journal of Health Economics 20 : 835 45.
48. Ribar, D. C. 1994 Teenage Fertility and High School Completion Review of Economics and Statistics 76 : 413 24.
49. Rivers, D. Q. H. Vuong. 1988 Limited Information Estimators and Exogeneity Tests for Simultaneous Probit Models Journal of Econometrics 39 : 347 66.
50. Sen, B. 2002 Does Alcohol-Use Increase the Risk of Sexual Intercourse among Adolescents? Evidence from the NLSY97 Journal of Health Economics 21 : 1085 93.
51. Shea, D. G., J. V. Terza, B. C. Stuart B. Briesacher. 2007 Estimating the Effects of Prescription Drug Coverage for Medicare Beneficiaries Health Services Research 43 : 933 49.
52. Smith, R. J. R. W. Blundell. 1986 An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply Econometrica 54 : 679 85.
53. Stone, P. W., C. Mooney-Kane, E. L. Larson, D. K. Pastor, J. Zwanziger A. W. Dick. 2006 Nurse Working Conditions, Organizational Climate, and Intent to Leave in ICUs: An Instrumental Variable Approach Health Services Research, forthcoming.
54. Stuart, B. C., J. A. Doshi J. V. Terza. 2007. "A New Approach to Assessing the Impact of Outpatient Drug Use on Hospital Spending in the Face of Indication Bias," Working Paper, Department of Epidemiology and Health Policy Research, University of Florida.
55. Terza, J. V. 1994. "Dummy Endogenous Variables and Endogenous Switching in Exponential Conditional Mean Regression Models," Working paper, Department of Economics, Penn State University, Presented at North American Summer Meeting of the Econometric Society, Quebec, Canada.
56. Terza, J. V. 1998 Estimating Count Data Models with Endogenous Switching: Sample Selection and Endogenous Treatment Effects Journal of Econometrics 84 : 129 54.
57. Terza, J. V. 2002 Alcohol Abuse and Employment: A Second Look Journal of Applied Econometrics 17 : 393 404.
58. Terza, J. V. 2006 Estimation of Policy Effects Using Parametric Nonlinear Models: A Contextual Critique of the Generalized Method of Moments Health Services and Outcomes Research Methodology 6 : 177 98.
59. Terza, J. V., A. Basu P. Rathouz. 2007 Two-Stage Residual Inclusion Estimation: Addressing Endogeneity in Health Econometric Modeling Journal of Health Economics, forthcoming.
60. Terza, J. V. W. Tsai. 2006 Censored Probit Estimation with Correlation Near the Boundary: A Useful Reparameterization Review of Applied Economics 2 : 1 12.
61. Treglia, M., C. A. Neslusan R. L. Dunn. 1999 Fluoxetine and Dothiepin Therapy in Primary Care and Health Resource Utilization: Evidence from the United Kingdom International Journal of Psychiatry in Clinical Practice 3 : 23 30.
62. van Houtven, C. H. E. C. Norton. 2007 Informal Care and Medicare Expenditures: Testing for Heterogeneous Treatment Effects Journal of Health Economics, forthcoming.
63. Volpp, K. G., A. G. Levy, D. A. Asch, J. A. Berlin, J. J. Murphy, A. Gomez, H. Sox, J. Zhu C. Lerman. 2006 A Randomized Controlled Trial of Financial Incentives for Smoking Cessation Cancer Epidemiology, Biomarkers, and Prevention 15 : 12 8.
64. Wooldridge, J. M. 1992 Some Alternatives to the Box-Cox Regression Model International Economic Review 33 : 935 55.
65. Wooldridge, J. M. 1997 Quasi-Likelihood Methods for Count Data In Handbook of Applied Econometrics, Volume II: Microeconometrics, edited by M. Pesaran P. Schmidt. Malden, MA : Blackwell Publishers Ltd.
66. Wooldridge, J. M. 2002. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA : MIT Press.