Equity in Swedish Health Care Reconsidered: New Results Based on the Finite Mixture Model
Lund University - Faculty of Medicine
Pravin K. Trivedi
Indiana University Purdue University Indianapolis (IUPUI) - Department of Economics
This paper reconsiders the equity issue in Swedish health care utilisation previously analyzed by Gerdtham (Health Economics 6, 303-319, 1997) within the framework of the standard two-part model. Departing from the user/nonuser distinction, we use the more flexible framework of the finite mixture model that distinguishes between frequent/infrequent users. Our empirical results indicate that the finite mixture model fits the data better than the two-part model. The results indicate that income increases use among infrequent users in both physician and hospital care but that there is no such income effect among frequent users.
Number of Pages in PDF File: 21
Keywords: equity, health care, count data, latent class models, finite mixture models
JEL Classification: C20, C25, C52, I10, I18
Date posted: August 3, 2000
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