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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 365:
Equity in Swedish Health Care Reconsidered: New Results based on the Finite Mixture Model

Ulf-G. Gerdtham and Pravin K. Trivedi

Abstract: This paper reconsiders the equity issue in Swedish health care utilisation previously analyzed by Gerdtham (Health Economics 6, 303-319, 1997) within the framework of the standard two-part model. Departing from the user/nonuser distinction, we use the more flexible framework of the finite mixture model that distinguishes between frequent/infrequent users. Our empirical results indicate that the finite mixture model fits the data better than the two-part model. The results indicate that income increases use among infrequent users in both physician and hospital care but that there is no such income effect among frequent users.

Keywords: Equity; health care; count data; latent class models; finite mixture models; (follow links to similar papers)

JEL-Codes: C20; C25; C52; I10; I18; (follow links to similar papers)

21 pages, March 15, 2000

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