Health Econometrics

In: Historical Events

Submitted By kevlarji
Words 1840
Pages 8
Applied Health Econometrics

Lecture 5

Recap

• What is the problem with using OLS in the binary model se>ng? • How can Whites corrected standard errors help in this situa@on? • What is the main difference between logit and probit binary models? • How can we choose between logit and probit binary models?

Health produc@on func@ons • Health is a broad concept and is an output or outcome of many health-­‐affec@ng variables or inputs. • The produc@on of health involves combining resources (or health inputs) to produce or aIain a desired stock of health in each period of @me given one’s efficiency and other technical constraints.

HS = f(HC, LS, BIO, ENV, SES, E)

where: • HS = Health status of an individual or

popula@on • HC = Health care • LS = A set of lifestyle variables such as diet and

exercise • BIO = Biological make-­‐up • ENV = the “environment”, equals a vector of

environmental factors including air, water

quality and sanita@on facili@es • SES = Socio-­‐economic status reflects the joint

effect of social and economic…...

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