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Open Access item Likelihood-Based Approaches to Modeling Demand for Medical Care

Authors:Creel, Michael
Farell, Montserrat
Keywords:Health care demand, Count data, Maximum likelihood
Issue Date:5-Oct-2001
Series/Report no.:UFAE and IAE Working Papers
498.01
Abstract:We review recent likelihood-based approaches to modeling demand for medical care. A semi-nonparametric model along the lines of Cameron and Johansson's Poisson polynomial model, but using a negative binomial baseline model, is introduced. We apply these models, as well a semiparametric Poisson, hurdle semiparametric Poisson, and finite mixtures of negative binomial models to six measures of health care usage taken from the Medical Expenditure Panel survey. We conclude that most of the models lead to statistically similar results, both in terms of information criteria and conditional and unconditional prediction. This suggests that applied researchers may not need to be overly concerned with the choice of which of these models they use to analyze data on health care demand.
URI:http://hdl.handle.net/10261/1912
Appears in Collections:(IAE) Informes y documentos de trabajo

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