Censored Quantile Instrumental Variable Estimates of Medical Care Price Elasticity

Amanda Kowalski of Yale University estimates the price elasticity of medical care expenditure using a censored quantile instrumental variable estimator. The instrumental variable strategy uses a family member's injury to induce price variation, finding elasticities ranging from -0.76 to -1.49 across the conditional deciles. Supplementary materials for the associated research article are available online.

Use Cases

• Estimating price elasticity of medical expenditure based on the described CQIV methodology.
• Analyzing heterogeneous treatment effects across the expenditure distribution as suggested by the quantile approach.
• Studying the impact of family health shocks on individual healthcare spending using the described instrumental variable.

Strengths

• Estimates are derived using a CQIV estimator that relaxes traditional censored model assumptions.
• The analysis addresses endogeneity with an instrumental variable based on family member injury.
• Elasticity estimates vary across the conditional deciles, providing distributional insights.

Limitations

• Column-level documentation is absent; field semantics must be inferred after download.
• Row count is unknown, which may limit suitability assessment.
• Last update date is unknown; freshness unverified.

Provenance

Source

Yale University

Collection Method

Censored quantile instrumental variable (CQIV) estimation using an instrumental variable strategy.