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Assessing household health expenditure with Box-Cox censoring models

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Published in Health economics. 2005, vol. 14, no. 9, p. 893-907
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.
Keywords Box-CoxCensoringTobitHurdle modelsHealth expenditure
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Other version: http://doi.wiley.com/10.1002/hec.1042
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Project projet IRIS "Santé et société"
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CHAZE, Jean-Paul. Assessing household health expenditure with Box-Cox censoring models. In: Health Economics, 2005, vol. 14, n° 9, p. 893-907. https://archive-ouverte.unige.ch/unige:24189

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Deposited on : 2012-11-26

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