Estimating willingness to pay for medicare using a dynamic life-cycle model of demand for health insurance

Journal of Econometrics

Volumn 156, Issue 1, 2010, Pages 130-147

  Khwaja, Ahmed ^a  

^a DUKE UNIVERSITY   (United States)

Author keywords

Dynamic discrete choice; Life cycle human capital; Medicare; Willingness to pay

Indexed keywords

AGGREGATE CONSUMPTION; DISCRETE CHOICE; EXPECTED UTILITY; HEALTH STATUS; HIGH SCHOOL; HUMAN CAPITALS; LIFE CYCLE MODEL; MEDICAL CARE; MEDICAL EXPENDITURES; MODEL SIMULATION; PANEL DATA; POLICY CHANGES; RANDOM UTILITY MODEL; WILLINGNESS TO PAY;

AGGREGATES; HEALTH; LIFE CYCLE;

HEALTH INSURANCE;

EID: 77950023431     PISSN: 03044076     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jeconom.2009.09.011     Document Type: Article

References (54)

1. Aitchison J., and Aitken C. Multivariate binary discrimination by the kernel method. Biometrika 63 (1976) 413-420
2. Arcidiacono, P., Sieg, H., Sloan, F., 2001. Living rationally under the volcano? An empirical analysis for heavy drinking and smoking. Working Paper No. 8602, NBER
3. Becker G.S., and Murphy K. A theory of rational addiction. Journal of Political Economy 96 (1988) 675-700
4. Becker G.S., Grossman M., and Murphy K. An empirical analysis of cigarette addiction. American Economic Review 84 (1994) 396-418
5. Benitez-Silva, H, Boz, E., Buchinsky, M., Nichols, J., Roy, S., Rust, J., Tristao, I., 2005. Health status, insurance, and expenditures in the transition from work to retirement. Working Paper, Department of Economics, SUNY-Stony Brook
6. Berndt E., Hall B., Hall E., and Hausman J. Estimation and inference in nonlinear structural models. Annals of Economic and Social Measurement 3 (1974) 653-665
7. Cameron S., and Heckman J. The dynamics of educational attainment for black, hispanic, and white males. Journal of Political Economy 109 (2001) 455-499
8. Card, D., Dobkin, C., Maestas, N., 2004. The impact of nearly universal insurance coverage on health care utilization and health: Evidence from medicare. Working paper No. 10365, NBER
9. Cutler D.M. Walking the tightrope on medicare reform. Journal of Economic Perspectives 14 (2000) 45-56
10. Davis, M.A., 1998. The health and financial decisions of the elderly. Ph.D. Dissertation, University of Pennsylvania
11. Deaton A.S., and Paxson C.H. In: Wise D. (Ed). Health, Income, and Inequality over the life cycle. Frontiers in the Economics of Aging vol. 7 (1998), University of Chicago Press, Chicago 431-457
12. Decker S.L. Medicare and the health of women with breast cancer. Journal of Human Resources 40 (2005) 948-968
13. Dow, W., 2001. The introduction of medicare: Effects on elderly health. Working Paper, Department of Health Policy and Administration, University of North Carolina, Chapel Hill
14. Duggan, M., Scott Morton, F., 2008. The impact of medicare part d on pharmaceutical prices and utilization. Working Paper, Department of Economics, University of Maryland
15. Eckstein Z., and Wolpin K. The specification and estimation of dynamic stochastic discrete choice models: A survey. Journal of Human Resources 24 (1989) 562-598
16. Feldstein M.S. An econometric model of the medicare system. Quarterly Journal of Economics 85 (1971) 1-20
17. Finkelstein, A., McKnight, R., 2005. What did medicare do (and was it worth it)? Working Paper, Society of Fellows, Harvard University
18. French E. The effects of health, wealth and wages on labour supply and retirement behavior. The Review of Economic Studies 72 (2005) 395-427
19. Fuchs V.R. Medicare reform: The larger picture. Journal of Economic Perspectives 14 (2000) 57-70
20. Juster F.T., and Suzman R. An overview of the health and retirement study. Journal of Human Resources 30 (1995) S7-S56
21. Gilleskie, D.B., 1994. A dynamic stochastic model of medical care use and work absence, Ph.D. Dissertation, University of Minnesota
22. Gilleskie D.B. A dynamic stochastic model of medical care use and work absence. Econometrica 66 (1998) 1-45
23. Grossman M. On the concept of health capital and the demand for health. Journal of Political Economy 80 (1972) 223-255
24. Heckman J. Sample selection as a specification error. Econometrica 47 (1979) 153-162
25. Heckman J. In: Manski C., and McFadden D. (Eds). Structural Analysis of Discrete Data with Econometric Applications (1981), MIT Press, Cambridge, MA 179-195
26. Heckman J., and Singer B. A method for minimizing the impact of distributional assumptions in econometric models for duration data. Econometrica 52 (1984) 271-320
27. Keeler E., Newhouse J., and Phelps C. Deductibles and the demand for medical care services: The theory of a consumer facing a variable price schedule under uncertainty. Econometrica 45 (1977) 641-656
28. Khwaja, A., 2001. Health insurance, habits and health outcomes: A dynamic stochastic model of investment in health. Ph.D. Dissertation, University of Minnesota
29. Khwaja, A., 2009. Investment in human capital, longevity and moral hazard in a stochastic life-cycle model of demand for health. Working paper, Fuqua School of Business, Duke University
30. Lakdawalla D., and Bhattacharya J. Does medicare benefit the poor?. Journal of Public Economics 90 (2005) 277-292
31. Lichtenberg F. The effects of medicare on health care utilization and outcomes. In: Garber A. (Ed). Frontiers in Health Policy Research vol. 5 (2002), MIT Press, Cambridge, MA
32. Lindeboom M., and Kerkhofs M. Health and work of the elderly: Subjective health measures, reporting errors and the endogenous relationship between health and work. Journal of Applied Econometrics 24 (2009) 1024-1046
33. Manning W., Newhouse J., Duan N., Keeler E., Leibowitz A., and Marquis M.S. Health insurance and the demand for medical care: Evidence from a randomized experiment. American Economic Review 77 (1987) 251-277
34. Manning W., and Marquis M.S. Health insurance: The tradeoff between risk pooling and moral hazard. Journal of Health Economics 15 (1996) 609-639
35. McClellan M. Medicare reform: Fundamental problems, incremental steps. Journal of Economic Perspectives 14 (2000) 21-44
36. McClellan M., and Skinner J. The incidence of medicare. Journal of Public Economics (2006) 257-276
37. McFadden D. Econometric models of probabilistic choice. In: Manski C., and McFadden D. (Eds). Structural Analysis of Discrete Data with Econometric Applications (1981), MIT Press, Cambridge, MA 198-272
38. Newhouse J. Medical care costs: How much welfare loss?. Journal of Economic Perspectives 6 (1992) 3-21
39. Palumbo M.G. Uncertain medical expenses and precautionary saving near the end of the life cycle. The Review of Economic Studies 66 (1999) 395-421
40. Phelps, C., 1973. Demand for health insurance : A theoretical and empirical investigation. Prepared for the Office of Economic Opportunity, R-1054-OEO, Santa Monica, CA: RAND
41. Philipson T.J., and Becker G.S. Old-age longevity and mortality-contingent claims. Journal of Political Economy 106 (1998) 551-573
42. Reinhardt U. Health care for the aging baby boom: Lessons from abroad. Journal of Economic Perspectives 14 (2000) 271-84
43. Rosenzweig M., and Wolpin K. Sisters, siblings, and mothers: The effect of teen-age childbearing on birth outcomes in a dynamic family context. Econometrica 63 (1995) 303-326
44. Rust J. Optimal replacement of GMC bus engines: An empirical model of Harold Zurcher. Econometrica 55 (1987) 999-1035
45. Rust J. Estimation of dynamic structural models, problems and prospects: Discrete decision processes. In: Sims C. (Ed). Advances in Econometrics: Sixth World Congress vol. 2 (1994), Cambridge University Press, Cambridge 119-170
46. Rust J. Structural estimation of Markov decision processes. In: Engle R.F., and McFadden D.L. (Eds). Handbook of Econometrics vol. 4 (1994), Elsevier, Amsterdam 3082-3143
47. Rust J., and Phelan C. How social security and medicare affect retirement behaviour in a world of incomplete markets. Econometrica 65 (1997) 781-831
48. Saving T.R. Making the transition to prepaid medicare. Journal of Economic Perspectives 14 (2000) 85-99
49. Skinner, J., Fisher, E., Wennberg, J., 2001. The efficiency of medicare. Working Paper No. 8395, NBER
50. van der Klaauw W., and Wolpin K.I. Social security and the retirement and savings behavior of low-income households. Journal of Econometrics 145 1-2 (2008) 21-42
51. Weisbrod B. The health care quadrilemma: An essay on technological change, insurance, quality of care, and cost containment. Journal of Economic Literature 29 (1991) 523-552
52. Wolpin K. Estimating a structural search model: The transition from schooling to work. Econometrica 55 (1987) 801-818
53. Wooldridge J.M. A framework of estimating dynamic, unobserved effects panel data models with possible feed to future explanatory variables. Economics Letters 68 (2000) 245-250
54. Yang Z., Gilleskie D.B., and Norton E. Health insurance, medical care, and health outcomes: A model of elderly health dynamics. Journal of Human Resources 44 1 (2009) 47-114