Reply to: Econometric issues in testing the age neutrality of health care expenditure.
Salas and Raftery allege that in our paper, (1) remaining life expectancy is an endogenous explanatory variable of health care expenditure and (2) the parameter designed to correct for sample selection bias in fact represents a hidden relationship between health care expenditure and age. We argue that claim (1) is not supported by the available empirical evidence, while claim (2) seems to derive from a too cursory reading of our paper.
Zweifel
P
P
Socioeconomic Institute of the University of Zurich, Zurich, Switzerland. pzweifel@soi.unizh.ch
Felder
S
S
Meier
M
M
D000367:Age Factors; D000368:Aged; D005060:Europe; D005102:Health Expenditures / Q000706:statistics & numerical data*; D006299:Health Services for the Aged / Q000191:economics*; D006801:Humans; D008017:Life Expectancy; D017059:Models, Econometric; D015983:Selection Bias