essays in public finance and industrial organization a dissertation ...
essays in public finance and industrial organization a dissertation ...
essays in public finance and industrial organization a dissertation ...
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CHAPTER 3. MEDIGAP 146<br />
Table 3.6: Second Stage: Marg<strong>in</strong>al Effects for Medigap Choice from Mult<strong>in</strong>omial<br />
Logit Model<br />
(1)<br />
Marg<strong>in</strong>al Effects for Medigap Choice<br />
(2) (3)<br />
Mfx. SE Mfx. SE Mfx. SE<br />
Log premium -0.375 (0.214) -0.477 (0.220) -0.473 (0.221)<br />
Log premium residuals 0.398 (0.227) 0.532 (0.242) 0.531 (0.242)<br />
County MA penetration (%) -0.026 (0.002) -0.029 (0.002) -0.029 (0.002)<br />
County MA penetration squared (%) 0.000 (0.000) 0.000 (0.000) 0.000 (0.000)<br />
Log HRR cost -0.049 (0.079) 0.002 (0.090) -0.009 (0.092)<br />
Male -0.028 (0.028) -0.029 (0.028)<br />
Age-65 0.061 (0.043) 0.065 (0.043)<br />
(Age-65)^2 -0.037 (0.020) -0.040 (0.020)<br />
(Age-65)^3 0.005 (0.003) 0.006 (0.003)<br />
Disabled eligibility<br />
Race group<br />
-0.010 (0.028) -0.013 (0.028)<br />
Asian 0.000 (0.068) 0.000 (0.069)<br />
Black -0.263 (0.026) -0.265 (0.026)<br />
Other<br />
Education group<br />
-0.025 (0.058) -0.028 (0.059)<br />
High school 0.038 (0.030) 0.041 (0.031)<br />
Less than college 0.126 (0.036) 0.130 (0.036)<br />
College or more 0.185 (0.039) 0.188 (0.042)<br />
Log <strong>in</strong>come -0.018 (0.013) -0.017 (0.014)<br />
Married 0.004 (0.024) 0.004 (0.024)<br />
Work<strong>in</strong>g 0.014 (0.029) 0.020 (0.029)<br />
Served <strong>in</strong> armed forces<br />
Self-reported health<br />
-0.033 (0.037) -0.033 (0.038)<br />
Excellent -0.094 (0.051)<br />
Very good -0.113 (0.052)<br />
Good -0.097 (0.049)<br />
Fair<br />
Diagnosis <strong>in</strong>dicators<br />
Treatment <strong>in</strong>dicators<br />
IADL <strong>in</strong>dicators<br />
-0.097 (0.050)<br />
Year FE Yes Yes<br />
Log pseudolikelihood/R-squared -15,205,864 -13,914,167 -13,853,769<br />
N 3,556 3,556 3,556<br />
Source: 2000-2005 MCBS; Weiss Rat<strong>in</strong>gs; Dartmouth Atlas, CMS State-County Penetration Files<br />
Notes: Marg<strong>in</strong>al effects for Medigap choice from mult<strong>in</strong>omial logit model with control function for Medigap premiums.<br />
Marg<strong>in</strong>al effects calculated at the sample means. For b<strong>in</strong>ary variables the predicted change <strong>in</strong> probability for a 0 to 1 change<br />
is shown. The sample is restricted to <strong>in</strong>dividuals with Medigap, HMO or no supplemental coverage who turned 65 <strong>in</strong> 2000 or<br />
later. The omitted race group is white, education group is less than high school, <strong>and</strong> health status is poor. Bootstrap<br />
st<strong>and</strong>ard errors looped over the premium <strong>and</strong> choice equations <strong>and</strong> clustered by <strong>in</strong>dividual <strong>in</strong> parentheses.
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