On using sample selection methods in estimating the price elasticity of firms' demand for insurance.
We evaluate a technique based on sample selection models that has been used by health economists to estimate the price elasticity of firms' demand for insurance. We demonstrate that, this technique produces inflated estimates of the price elasticity. We show that alternative methods lead to valid estimates.
Marquis
M Susan
MS
RAND, Arlington, VA 22202-5050, USA. susanm@rand.org
Louis
Thomas A
TA
D003659:Decision Making, Organizational; D017049:Employer Health Costs / Q000706:statistics & numerical data*; D005249:Fees and Charges; D006264:Health Benefit Plans, Employee / Q000191:economics*; D006301:Health Services Needs and Demand / Q000191:economics*; D006302:Health Services Research; D007221:Industry / Q000191:economics; D017059:Models, Econometric