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Modelling bivariate count distributions with finite mixture models: application to health care demand of married couples

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  • Xiaoyong Zheng
  • David Zimmer

Abstract

Count measures of health care utilization are often correlated with other measures of utilization. In addition, utilization measures display a high proportion of zero observations. This article attempts to accommodate both data features in one model, with an application to medical care usage of husbands and wives. A bivariate count representation is used to model dependence between husbands' and wives' utilizations, and a finite mixture specification accommodates the problem of excess zeros. Results show that married couples are characterized by two distinct subpopulations according to the intensity of utilization of the wife.

Suggested Citation

  • Xiaoyong Zheng & David Zimmer, 2011. "Modelling bivariate count distributions with finite mixture models: application to health care demand of married couples," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1477-1483.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1477-1483
    DOI: 10.1080/00036840802600509
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    Cited by:

    1. Hendrik Schmitz, 2012. "More health care utilization with more insurance coverage? Evidence from a latent class model with German data," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4455-4468, December.

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