Health Econometrics
A decade ago, Newhouse (1987) assessed the balance of trade between imports from the econometrics literature into health economics, and exports from health economics to a wider audience. While it is undoubtedly true that imports of concepts and techniques still dominate the balance, the literature reviewed in this chapter shows that the range and volume of applied econometric work in health economics has increased dramatically over the past ten years.
Examples of good practice in health econometrics make extensive use of tests for misspecification and explicit model selection criteria. Robust and distribution-free estimators are of increasing importance, and the chapter gives examples of nonparametric, and semiparametric estimators applied to sample selection, simultaneous equations, count data, and survival models.
- Panel Data Unit Root Tests
- Hellinger distance criterion
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