Heterogeneous effect of coinsurance rate on healthcare costs: generalized finite mixtures and matching estimators
Type:
SIEPR Discussion Paper 14-014
Author(s):
Published:
11/17/14
Abstract:
The paper proposes a combination of finite mixture models and matching estimators to account for
heterogeneous and nonlinear effects of the coinsurance rate on healthcare expenditure. We use loglinear
model and generalized linear models with different distribution families, and measure the conditional
average treatment effect of a rise in the coinsurance rate in each component of the model. The estimations
with panel data for adult Japanese consumers in 2008-2010 and for female consumers in 2000-2010
demonstrate the presence of subpopulations with high, medium and low healthcare expenditure, and
subpopulation membership is explained by lifestyle variables. Generalized linear models provide adequate
fit compared to loglinear model. Conditional average treatment effect estimations reveal the existence of
nonlinear effects of the coinsurance rate in the subpopulation with high expenditure.
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