Do red herrings swim in circles? Controlling for the endogeneity of time to death
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In: Journal of Health Economics, Vol. 29, No. 2, 01.03.2010, p. 205-212.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Do red herrings swim in circles?
T2 - Controlling for the endogeneity of time to death
AU - Felder, Stefan
AU - Werblow, Andreas
AU - Zweifel, Peter
N1 - Copyright 2009 Elsevier B.V. All rights reserved.
PY - 2010/3/1
Y1 - 2010/3/1
N2 - Studies on the effect of ageing on health care expenditure (HCE) have revealed the importance of controlling for time-to-death (TTD). These studies, however, are subject to possible endogeneity if HCE influences the remaining life expectancy. This paper introduces a 10-year observation period on monthly HCE, socioeconomic characteristics and survivor status to first predict TTD and then use the predicted values as an instrument in the regression for HCE. While exogeneity of TTD has to be rejected, core results concerning the role of TTD rather than age as a determinant of HCE (the 'red herring' hypothesis) are confirmed.
AB - Studies on the effect of ageing on health care expenditure (HCE) have revealed the importance of controlling for time-to-death (TTD). These studies, however, are subject to possible endogeneity if HCE influences the remaining life expectancy. This paper introduces a 10-year observation period on monthly HCE, socioeconomic characteristics and survivor status to first predict TTD and then use the predicted values as an instrument in the regression for HCE. While exogeneity of TTD has to be rejected, core results concerning the role of TTD rather than age as a determinant of HCE (the 'red herring' hypothesis) are confirmed.
KW - Health sciences
KW - Age Factors
KW - Aged
KW - Bias (Epidemiology)
KW - Chi-Square Distribution
KW - Confidence Intervals
KW - Female
KW - Health Care Costs
KW - Humans
KW - Insurance, Health
KW - Life Expectancy
KW - Male
KW - Middle Aged
KW - Mortality
KW - Sex Factors
KW - Socioeconomic Factors
KW - Survival Analysis
KW - Time Factors
UR - http://www.scopus.com/inward/record.url?scp=77950628819&partnerID=8YFLogxK
U2 - 10.1016/j.jhealeco.2009.11.014
DO - 10.1016/j.jhealeco.2009.11.014
M3 - Journal articles
C2 - 20022392
VL - 29
SP - 205
EP - 212
JO - Journal of Health Economics
JF - Journal of Health Economics
SN - 0167-6296
IS - 2
ER -