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Given extensive use of individual level data in Health Economics, it has become increasingly important to understand the microeconometric techniques available to applied researchers. The purpose of this book is to give readers convenient access to a collection of recent contributions that contain innovative applications of microeconometric methods to data on health and health care. Contributions are selected from papers presented at the European Workshops on Econometrics and Health Economics and published in Health Economics. Topics covered include: Latent Variables Unobservable heterogeneity and selection problems Count data and survival analysis Flexible and semiparametric estimators for limited dependent variables Classical and simulation methods for panel data Publication marks the tenth anniversary of the Workshop series. Doctoral students and researchers in health economics and microeconomics will find this book invaluable. Researchers in related fields such as labour economics and biostatistics will also find the content of use

Large differences in mortality rates across those with different levels of education are a well- established fact. This association between mortality and education may partly be explained by confounding factors, including cognitive ability. Cognitive ability may also be affected by education so that it becomes a mediating factor in the causal chain. In this paper we estimate the impact of education on mortality using inverse probability weighted (IPW) estimators, using either cognitive ability as a selection variable or as a mediating variable. We develop an IPW estimator to analyse the mediating effect in the context of survival models. Our estimates are based on administrative data, on men born in 1944-1947 who were examined for military service in the Netherlands between 1961-1965, linked to national death records. For these men we distinguish four education levels and we make pairwise comparisons. From the empirical analyses we conclude that the mortality differences observed by education are only attributable to education effects for highly educated individuals. For less educated individuals the observed mortality gain is mainly attributable to differences in cognitive ability.

Large differences in mortality rates across those with different levels of education are a well-established fact. Cognitive ability may be affected by education so that it becomes a mediating factor in the causal chain. In this paper, we estimate the impact of education on mortality using inverse-probability-weighted (IPW) estimators. We develop an IPW estimator to analyse the mediating effect in the context of survival models. Our estimates are based on administrative data, on men born between 1944 and 1947 who were examined for military service in the Netherlands between 1961 and 1965, linked to national death records. For these men, we distinguish four education levels and we make pairwise comparisons. The results show that levels of education have hardly any impact on the mortality rate. Using the mediation method, we only find a significant effect of education on mortality running through cognitive ability, for the lowest education group that amounts to a 15% reduction in the mortality rate. For the highest education group, we find a significant effect of education on mortality through other pathways of 12%.

The double‐hurdle model with dependence is extended by incorporating the Box–Cox transformation. The model nests a range of popular limited dependent variable models, including the Gaussian double‐hurdle, the generalized Tobit, and two‐part models. Estimates of US beef consumption suggest that the Box–Cox specification outperforms all other restrictive models. Price elasticities are small and similar to findings in the literature. Household age composition and demographic variables also play significant roles in determining beef consumption. Income and cross‐price elasticities are insignificant.

In this paper we use discrete-time proportional hazard models with internationally comparable longitudinal data from the full eight waves of the European Community Household Panel (ECHP) to study the relationship between retirement, health levels and health shocks in nine European countries. The results show a consistency of effect with only small variation in magnitude both for latent health stock variables as well as the subjective SAH measures. This is compatible with previous findings that declining health is associated with an increased probability of retirement. Additionally a three-level graduated acute health shock variable was created, that shows evidence of a gradient in the effect.