Econometrics

Applied Health Economics: Jones (Routledge Advanced Texts in by A. Rice, Jones

By A. Rice, Jones

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2 Bar chart for SAH by wave, men. 5) The figures reveal the characteristic shape of the distribution of SAH. The modal category is good health, and a clear majority of respondents report either excellent or good health. The distribution is skewed, rather than symmetric, with a long right-hand tail of individuals who report fair, poor or very poor health. Comparing the distribution over time there is a decrease in the proportion reporting excellent health and an increase in those reporting fair or worse health.

The first step is to load the Stata data file, called bhps. log”, replace As this is a panel dataset it is useful to specify new variables that contain the individual (i) and time (t) indices. These can be used to sort the data prior to analysis: • iis pid • tis wavenum • sort pid wavenum Describing the dynamics of health 13 The BHPS includes missing data owing to both unit and item non-response, so not all individuals in our dataset are observed at every wave. As described above, this gives two options for the analysis: using the unbalanced panel, that includes all available observations, or the balanced panel, that restricts the sample to those individuals who have a complete set of data for all of the waves.

Dev. 563778 Notice the values of the skewness and kurtosis statistics. These are quite different from those that would be expected for a normal variate: 0 and 3 respectively. They show negative skewness (long left-hand tail) and a higher level of kurtosis. A formal test for normality (sktest) is applied to HUI, using the survey weights provided. 000 Variants of the glcurve command can be used to produce generalized Lorenz, Lorenz, generalized concentration curves, and concentration curves for HUI.

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