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Saranac-Lake-hospital-ratings.htm

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The control function model takes the form of a two-stage estimation. The first stage, the selection, predicts the probabilities of having no usual source of care, having a regular doctor, and having a regular site, respectively, given predisposing, enabling, and need factors. The second-stage estimation incorporates the transformations of the predicted probabilities from the first stage. Let [I.sub.0], [I.sub.d], and [I.sub.s], be binary dummy variables indicating having no usual source of care, having a regular doctor, and having a regular site. Without the control for selection, the prediction of service use can be written as

The fourth and fifth columns are the counterparts of columns one and two in single-equation estimations. For blood pressure and cholesterol level checkups, in which endogeneity saranac of having a usual source of care was found, estimations without endogeneity control overestimated the relative effects of having a regular doctor to having a regular site. The comparative advantage of having a regular doctor (relative to having a regular site) estimated by the single-equation approach is shown in the last column of Table 4. Except for blood pressure and cholesterol level checkups, no significant differences were found in the effects of having a regular doctor and having a regular site.


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