Estimating Heterogeneous Take-Up and Crowd-Out Responses to Marginal and Non-Marginal Medicaid Expansions

52 Pages Posted: 20 Jun 2011

See all articles by John C. Ham

John C. Ham

National University of Singapore (NUS) - Department of Economics

Serkan Ozbeklik

Claremont McKenna College - Robert Day School of Economics and Finance; Claremont McKenna College

Lara D. Shore-Sheppard

Williams College - Department of Economics; National Bureau of Economic Research (NBER)

Abstract

We use a linear probability model with interactions and a switching probit model (SPM) to estimate heterogeneous effects of Medicaid expansions on Medicaid take-up, private insurance coverage and crowd-out. Specifically, we estimate: i) LATEs; ii) ATETs for the currently eligible; and iii) ATETs for those made eligible by a non-marginal (counterfactual) expansion in Medicaid eligibility. Both estimation methods can control for observable differences across individuals, while SPM can also control for unobservable differences. For Medicaid take-up and private insurance coverage, the effects are precisely estimated and differ dramatically across demographic groups, but this is less true for the crowd-out estimates.

Keywords: Medicaid expansions, take-up, crowd-out, treatment effects, switching probit model, linear probability model with interactions, counterfactual policy analysis

JEL Classification: I18, C21

Suggested Citation

Ham, John C. and Ozbeklik, Serkan and Shore-Sheppard, Lara Dawn, Estimating Heterogeneous Take-Up and Crowd-Out Responses to Marginal and Non-Marginal Medicaid Expansions. IZA Discussion Paper No. 5779. Available at SSRN: https://ssrn.com/abstract=1867048

John C. Ham

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore

Serkan Ozbeklik

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States

Claremont McKenna College ( email )

Robert Day School of Economics and Finance
Claremont, CA 91711
United States

Lara Dawn Shore-Sheppard

Williams College - Department of Economics ( email )

Williamstown, MA 01267
United States
413-597-2226 (Phone)
413-597-4045 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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