Premium
Reply to: econometric issues in testing the age neutrality of health care expenditure
Author(s) -
Zweifel Peter,
Felder Stefan,
Meier Markus
Publication year - 2001
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.637
Subject(s) - life expectancy , economics , health care , neutrality , expectancy theory , sample (material) , selection bias , instrumental variable , actuarial science , econometrics , public economics , sociology , medicine , demography , political science , law , economic growth , population , chemistry , management , chromatography , pathology
Salas and Raftery allege that in our paper, (1) remaining life expectancy is an endogenous explanatory variable of health care expenditure and (2) the parameter designed to correct for sample selection bias in fact represents a hidden relationship between health care expenditure and age. We argue that claim (1) is not supported by the available empirical evidence, while claim (2) seems to derive from a too cursory reading of our paper. Copyright © 2001 John Wiley & Sons, Ltd.