A Bayesian Analysis of the OPES Model with a Non-parametric Component: Application to Dental Insurance and Dental Care
نویسندگان
چکیده
This paper analyzes the e¤ect of dental insurance on utilization of general dentist services by adult US population aged from 25 to 64 years using the ordered probit model with endogenous selection (OPES). Our econometric framework accommdates endogeneity of insurance and the ordered nature of the measure of dental utilization. The study nds strong evidence of endogeneity of dental insurance to utilization and identi es interesting patterns of nonlinear dependencies between the dental insurance status and individuals age and income. The calculated average treatment e¤ect supports the claim of adverse selection into the treated (insured) state and indicates a strong positive incentives e¤ect of dental insurance.
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