A Test for Exogeneity in the Presence of Nonlinearities

Babington, Michael; Cano-Urbina, Javier

doi:10.1177/1536867x1601600313

Cited by 3 publications

(2 citation statements)

References 20 publications

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“…Tests for endogeneity for regressor, PHI status in our analysis, were performed to see if instrumentation was warranted. The assessment was achieved using the Durbin and Wu–Hausman endogeneity tests, with a finding of non-significance ( P > 0.05) indicating that the regressor was exogenous and not needing instrumentation ( Babington and Cano-Urbina, 2016 ; Garson, 2018 ). In addition, over-identification and weak IV tests were also conducted to test the validity of the IVs.…”

Section: Methodsmentioning

confidence: 99%

Effect of supplementary private health insurance on out-of-pocket inpatient medical expenditure: evidence from Malaysia

Ng,

Choo,

et al. 2024

Health Policy and Planning

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The vital role of healthcare financing in achieving Universal Health Coverage (UHC) is indisputable. However, most countries, including Malaysia, face challenges in establishing an equitable and sustainable healthcare financing system due to escalating healthcare costs, an ageing population, and a growing disease burden. With desirable pre-payment and risk pooling features, private health insurance (PHI) is considered an alternative financing option to reduce out-of-pocket (OOP) medical expenditure. However, ongoing theoretical and empirical debates persist regarding the adequacy of financial risk protection provided by PHI largely because it depends on its role, the benefit design, and the regulations in place. Our study aimed to investigate the effect of supplementary PHI on OOP inpatient medical expenditure in Malaysia. Secondary data analysis was conducted using the Malaysian National Health and Morbidity Survey 2019 dataset. A total of 983 respondents with a history of inpatient hospitalization in the past 12 months were included in the study. Instrumental variable (IV) analysis using a two-stage residual inclusion was performed to address endogeneity bias, with wealth status and education level as the IVs. Tobit regression model was used in the second stage considering the censored distribution of the outcome variable. Missing data was handled using multiple imputation. About one-fifth of the respondents had PHI. In this study, we found that having PHI significantly increased OOP inpatient medical expenditure in all three marginal effects. Additionally, age, residential location, ethnicity(citizenship), being covered by government guarantee letter, government funding, and employer-sponsored health insurance were other significant factors associated with OOP inpatient medical expenditure. Our findings undermine a key justification to advocate PHI uptake among the population, with a need for the Malaysian government to reassess the role of PHI in healthcare financing and reconsider PHI subsidization policy. Regulations should also be strengthened to enhance the financial risk protection provided by PHI.

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Section: Methodsmentioning

confidence: 99%

Effect of supplementary private health insurance on out-of-pocket inpatient medical expenditure: evidence from Malaysia

Ng,

Choo,

et al. 2024

Health Policy and Planning

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“…For example, evidence in some of US counties points to the presence of a larger share of the population with higher levels of degree attainment being associated with a higher percent of the county's labor force being employed in management and professional industries and in finance and insurance (see Largen, 2017). This two-stage method was implemented by the locmtest module in STATA (for more detail, see Babington and Cano-Urbina, 2016). Results of the Lagrange Multiplier-Wald ("urban" model: 5.11, p 5 0.02; "rural" model: 0.0006, p 5 0.19) and Naı €ve Wald tests ("urban" model: 5.40; p 5 0.02; "rural" model: 0.0013; p 5 0.97) (see Buse, 1982) did reject the exogeneity assumption of the education variable for the urban LS-regression model but not for the rural LS-regression model.…”

Section: Afr 804mentioning

confidence: 99%

The rural–urban income divide among farm households: the role of off-farm work and farm size

El‐Osta

2020

AFR

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PurposeThe determinants of income of rural and urban farm households, with emphasis on the role of off-farm employment by farm household members and of farm size, are examined using data from the 2016 Agricultural Resource Management Survey (ARMS) and quantile regression procedure. The implemented quantile regression technique is extended to allow for the decomposition of the income gap between the two groups of farm households. Findings indicate, regardless of the location of the farm, a positive and significant impact of a previous year's participation in off-farm work by household members on the distribution of current household income. Having operated a larger-sized farm in the previous year is shown with a similar effect in the upper range of the income distribution for urban households and with a comparable impact but across the whole income distribution for rural farm households.Design/methodology/approachData from the 2016 ARMS are used in conjunction with quantile regression in order for decomposition of the income gap between the two groups of farm households.FindingsFindings show that urban farm households who in a previous year have participated in off-farm work and operated larger-sized farms tend to earn higher incomes. Results further indicate higher rates of return to education for “urban” farm households in comparison to “rural” farm households, particularly for those with a college education and beyond who are at the lower portion of the income distribution.Research limitations/implicationsTo the extent that the ARMS is an annual cross-sectional data, the temporal impacts of factors that potentially may influence the incomes of farm households in urban and rural areas cannot be measured.Practical implicationsFindings from this research indirectly support previous published research where higher earnings by urban US population were documented in comparison to rural population and where earnings tend to rise as a result of participation in off-farm work and in expanding the size of the farming operation; this is in addition to the procurement of higher education.Social implicationsThe results of a higher rate of return to education for “urban” farm households in comparison to “rural” farm households have important policy implications for policymakers.Originality/valueThis is the first paper in the agricultural economic literature that implements a method of assessing the rural–urban divide across all of the quantiles of income distribution.

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Optimizing effects of firms’ technological and non-technological processes on export-led innovation

Adewumi

Lien

Mydland

2023

Economics of Innovation and New Technology

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A Test for Exogeneity in the Presence of Nonlinearities

Cited by 3 publications

References 20 publications

Effect of supplementary private health insurance on out-of-pocket inpatient medical expenditure: evidence from Malaysia

Effect of supplementary private health insurance on out-of-pocket inpatient medical expenditure: evidence from Malaysia

The rural–urban income divide among farm households: the role of off-farm work and farm size

Optimizing effects of firms’ technological and non-technological processes on export-led innovation

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