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Assessing household health expenditure with Box–Cox censoring models

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  • Jean‐Paul Chaze

Abstract

In order to assess the combined presence of zero expenditures and a heavily skewed distribution of positive expenditures, the Box–Cox transformation with location parameter is used to define a set of models generalising the standard Tobit, Heckman selection and double‐hurdle models. Extended flexibility with respect to previous specifications is introduced, notably regarding negative transformation parameters, which may prove necessary for medical expenditures, and corner‐solution outcomes. An illustration is provided by the analysis of household health expenditure in Switzerland. Copyright © 2005 John Wiley & Sons, Ltd.

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  • Jean‐Paul Chaze, 2005. "Assessing household health expenditure with Box–Cox censoring models," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 893-907, September.
  • Handle: RePEc:wly:hlthec:v:14:y:2005:i:9:p:893-907
    DOI: 10.1002/hec.1042
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    References listed on IDEAS

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    2. Alice Sanwald & Engelbert Theurl, 2017. "Out-of-pocket expenditures for pharmaceuticals: lessons from the Austrian household budget survey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(4), pages 435-447, May.
    3. Alice sanwald & Engelbert Theurl, 2014. "What drives out-of pocket health expenditures of private households? - Empirical evidence from the Austrian household budget survey," Working Papers 2014-04, Faculty of Economics and Statistics, Universität Innsbruck.
    4. Albouy, Valerie & Davezies, Laurent & Debrand, Thierry, 2010. "Health expenditure models: A comparison using panel data," Economic Modelling, Elsevier, vol. 27(4), pages 791-803, July.
    5. Jones, A.M, 2010. "Models For Health Care," Health, Econometrics and Data Group (HEDG) Working Papers 10/01, HEDG, c/o Department of Economics, University of York.
    6. Valerie Albouy & Laurent Davezies & Thierry Debrand, 2009. "Dynamic Estimation of Health Expenditure: A new approach for simulating individual expenditure," Working Papers DT20, IRDES institut for research and information in health economics, revised Jan 2009.
    7. Alice Sanwald & Engelbert Theurl, 2014. "Out-of-pocket expenditures of private households for dental services - Empirical evidence from Austria," Working Papers 2014-30, Faculty of Economics and Statistics, Universität Innsbruck.
    8. Steven C. Hill & G. Edward Miller, 2010. "Health expenditure estimation and functional form: applications of the generalized gamma and extended estimating equations models," Health Economics, John Wiley & Sons, Ltd., vol. 19(5), pages 608-627, May.

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