Addressing 0 values with econometrics

Health care data–particularly spending data–often has a right skewed distribution with a high number of 0’s. For instance, US health care spending in 2019 was $11,852. However, many people don’t get sick and have no health care spending. Moreover, people generally don’t have negative health care spending. Further, some many patients with serious diseases rack…

Longitudinal Modelling of Healthcare Expenditures: Challenges and Solutions

Previous analyses–such as Basu and Manning 2009–have addressed the problem of mass of health care expenditures around $0. In typical economic analyses, we assume that the dependent variable is normally distributed. In the case of health care expenditures, however, a large number of people have $0 expenditures (i.e., healthy individuals). Further, among sick individuals that…