Year: 2009
Type: article
Abstract: This paper proposes a specification of Wooldridge's (1995) two step estimation method in which selectivity bias is due to two sources rather than one.The main objective of the paper is to show how the method can be applied in practise.The application concerns an important problem in health economics: the presence of asymmetric information in the private health insurance markets on which there exists a large literature.The data for the empirical application is drawn from the 2003/2004 Medical Expenditure Panel Survey in conjunction with the 2002 National Health Interview Survey.The author wish to thank M.
Author: Cinzia Di Novi
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1556933111