APPLYING BETA-TYPE SIZE DISTRIBUTIONS TO HEALTHCARE COST REGRESSIONS
Version of Record online: 8 JUL 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume 29, Issue 4, pages 649–670, June/July 2014
How to Cite
Jones, A. M., Lomas, J. and Rice, N. (2014), APPLYING BETA-TYPE SIZE DISTRIBUTIONS TO HEALTHCARE COST REGRESSIONS. J. Appl. Econ., 29: 649–670. doi: 10.1002/jae.2334
- Issue online: 22 APR 2014
- Version of Record online: 8 JUL 2013
- Manuscript Revised: 16 MAR 2013
- Manuscript Received: 8 NOV 2011
This paper extends the literature on modelling healthcare cost data by applying the generalised beta of the second kind (GB2) distribution to English hospital inpatient cost data. A quasi-experimental design, estimating models on a sub-population of the data and evaluating performance on another sub-population, is used to compare this distribution with its nested and limiting cases. While for these data the beta of the second kind (B2) distribution and generalised gamma (GG) distribution outperform the GB2, our results illustrate that the GB2 can be used as a device for choosing among competing parametric distributions for healthcare cost data. Copyright © 2013 John Wiley & Sons, Ltd.