Unbiased Analysis of Today's Healthcare Issues

Sample Selection vs. Two-part Model

Much of health care data is characterized by a large cluster of data at 0, and a right skewed distribution of the remaining outcomes. For instance, people who do not get sick generally use $0 of medical care. Those who do get sick, use a varying amount of medical care dollars, but there are a […]

Read the rest of this entry »

Local Instrumental Variables

Traditional instrumental variables (IV) econometric methodologies often fail to take into account response heterogeneity. Response heterogeneity based on characteristics not observed by the researcher can create a heterogeneity in the self-selection process. For instance, one group of people who elect to receive surgery may have knowledge of a family history where surgery is typically successful, […]

Read the rest of this entry »