University of St. Michael s College In the University of Toronto, Toronto, Canada

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AHEW 2014 September 25-27, 2014 University of St. Michael s College In the University of Toronto, Toronto, Canada www.healtheconometrics.org

AHEW 2014 The Annual Health Econometrics Workshop The Annual Health Econometrics Workshop (AHEW) provides a forum to discuss the use of econometric and other quantitative methods to address issues in health economics and policy, health services research, and outcomes research. It is the first series of meetings of its kind in North America and facilitates the exchange of ideas among the growing health econometrics community. The format of the workshop will follow the traditional structure of the American Health Economics Conference (AHEC), National Bureau of Economic Research (NBER) Conferences, and the European Workshops on Econometrics and Health Economics (i) a nominated discussant presents and appraises the paper, (ii) the author(s) responds, and (iii) open discussion follows. Each paper will be allotted one hour. The workshop has limited capacity but is open to all. If interested, please register at www.healtheconometrics.org Annual Health Econometrics Workshop 2014 2

AHEW 2014 The Sixth Annual Workshop Welcome to the 2014 (6 th ) Annual Health Econometrics Workshop. The workshop will be held at the University of St. Michael s College in the University of Toronto, Toronto, Canada from Sep 25-27, 2014. We received thirty four highly qualified papers this year. Due to time constraints, we were able to include only 9 papers in the program. We would like to thank our discussants for taking the time to present these papers at the workshop. Their insights into the econometric issues are the highlight of the program. We also thank Professor Jeffery Racine of McMaster University for agreeing to deliver the key-note speech of the conference. We gratefully acknowledge the support of our sponsors, Agency for Healthcare Research and Quality (AHRQ), Pfizer Inc, Canadian Centre for Health Economics and the Institute of Health Policy Management and Evaluation at the University of Toronto and the University of Washington, School of Public Health, without whom this conference would not be possible. We hope you will find the workshop stimulating. See you all in September! Organizing Committee Anirban Basu, University of Washington, Seattle Andrew Ching, University of Toronto (Local Co-chair) Partha Deb, Hunter College, CUNY Donna Gilleskie, UNC Chapel Hill Paul Grootendorst, University of Toronto (Local Co-chair) Audrey Laporte, University of Toronto (Local Co-chair) Willard Manning, University of Chicago John Mullahy, University of Wisconsin-Madison Edward Norton, University of Michigan Annual Health Econometrics Workshop 2014 3

Program at a Glance AHEW 2014 Thursday, September 25, 2014 6:30 9:00 PM : Pre-conference Welcome Session at Ciao Wine Bar Friday, September 26, 2014 7:30 8:30 AM : Breakfast and Welcome 8:30 9:30 AM : Paper # 1, Frank Windmeijer discusses Powell & Goldman 9:30 10:30 AM : Paper # 2, Salvador Navarro discusses Adams 10:30 11:00 AM : Coffee Break 11:00 12:00 PM : Paper # 3, Bill Greene discusses Lomas et al. 12:00 1:00 PM : LUNCH 1:00 2:00 PM : Paper # 4, Victor Aguirregabiria discusses Hai & Heckman 2:00 3:00 PM : Paper # 5, Gabriela Conti discusses Savelyev & Tan 3:00 3:30 PM : Coffee Break 3:30 5:00 PM : Keynote Speech by Prof. Jeffrey Racine 6:30 10:00 PM : Evening Social Event & Dinner at Pangaea Restaurant Saturday, September 27, 2014 7:30 8:30 AM : Breakfast 8:30 9:30 AM : Paper # 6, Richard Lindrooth discusses Timmins 9:30 10:30 AM : Paper # 7, Brian Ferguson discusses Pelgrin & St-Amour 10:30 11:00 AM : Coffee Break 11:00 12:00 PM : Paper # 8, Andrew Ching discusses Harris & Kohn 12:00 1:00 PM : Paper # 9, Bob Town discusses Wilson 1:00 PM : BOX LUNCH 2:00 PM : Adjourn (All papers will be available for download at the conference website: www.healtheconometrics.org) Annual Health Econometrics Workshop 2014 4

Keynote Speaker AHEW 2014 Friday, October 4, 2013 3:30 5:00 PM Jeffrey S. Racine, PhD McMaster University Ontario, Canada Recent advances in nonparametric instrumental regression Instrumental regression techniques have played a key role in both the theory and practice of econometrics. There is a growing literature on the nonparametric treatment of this topic. The basic framework involves a response variable denoted Y and a vector of explanatory variables denoted Z. The variables in Z can be endogenous or exogenous and the relationship of interest is given by Y = φ(z) + U where φ( ) is the function of interest but will not, in the present setting, coincide with the conditional expectation function E(Y Z) hence requires special treatment (the exception being when all variables contained in Z are in fact exogenous). This talk will outline recent advances in nonparametric instrumental regression methods and discuss potential application in the health arena. Annual Health Econometrics Workshop 2014 5

AHEW 2014 Biographical Sketch of Keynote Speaker Prof. Jeffrey S. Racine Senator William McMaster Chair in Econometrics; Professor, Department of Economics; Professor, Graduate Program in Statistics, Department of Mathematics and Statistics McMaster University, Ontario, Canada Jeffrey S. Racine s (Ph.D., Economics, University of Western Ontario, 1989) research interests include nonparametric estimation and inference, cross-validatory model selection, nonparametric instrumental methods, and entropy-based measures of dependence and their statistical underpinnings. He is also interested in parallel distributed computing paradigms and their application to computationally intensive nonparametric estimators. He is currently serving as the Associate Editor for Econometric Reviews, the Journal of Econometric Methods (Berkeley Electronic Press), and is a co-editor for the Oxford Handbook of Semiparametric and Nonparametric Econometric Methods. He is the co-author of Nonparametric Econometrics: Theory and Practice (Princeton University Press, 2007, 768 Pages, with Qi Li), and has published 75 peer reviewed journal articles and book chapters. He also has written three R (www.r-project.org) packages, the np package (cran.r- project.org/web/packages/np), the nprmpi package (cran.r-project.org/web/packages/nprmpi), and the crs package (cran.rproject.org/web/packages/crs), available on the Comprehensive R Archive Network. Annual Health Econometrics Workshop 2014 6

Detailed Program AHEW 2014 Friday, September 26, 2014 8:25 8:30 AM : Welcome SESSION # 1 Chair Anirban Basu, University of Washington 8:30 9:30 AM : M H A S P H I Discussant: Frank Windmeijer, University of Bristol, UK Primary Author: David Powell, RAND Corp 9:30 10:30 AM : E H T E R C T Discussant: Salvador Navarro, University of Western Ontario, Canada Primary Author: Christopher P. Adams, Federal Trade Commission 10:30 11:00 AM : Coffee Break SESSION # 2 Chair Tim Halliday, University of Hawaii 11:00 12:00 PM : R : C M E F C D Discussant: William Greene, New York University Primary Author: James Lomas, University of York, UK 12:00 1:00 PM : LUNCH SESSION # 3 Chair Paul Contoyannis, McMaster University, Canada 1:00 2:00 PM : A D M H, E W C C R A Discussant: Victor Aguirregabiria, University of Toronto, Canada Primary author: Rong Hai, University of Chicago 2:00 3:00 PM : P, E, H R O H A I Discussant: Gabriella Conti, University College of London, UK Primary Author: Peter Savelyev, Vanderbilt University 3:00 3:30 PM : Coffee Break Annual Health Econometrics Workshop 2014 7

Detailed Program AHEW 2014 Friday, September 26, 2014 (Contd.) SESSION # 5 Chair Paul Grootendorst, University of Toronto 3:30 5:00 PM : KEY-NOTE SPEECH Speaker: JEFFREY S. RACINE, MCMASTER UNIVERSITY Topic: RECENT ADVANCES IN NONPARAMETRIC INSTRUMENTAL REGRESSIONS 6:30 10:00 PM : Social Event & Dinner at PANGAEA RESTAURANT Saturday, September 27, 2014 SESSION # 6 Chair Donna Gilleskie, UNC Chapel Hill 8:30 9:30 AM : H H R F P? E H M T Discussant: Richard Lindrooth, University of Colorado, Denver Primary Author: Lori Timmins, University of British Columbia, Canada 9:30 10:30 AM : L C R H I S Discussant: Brian Ferguson, University of Guelph, Canada Primary Author: Florian Pelgrin, University of Lausanne, Switzerland 10:30 11:00 AM : Coffee Break SESSION # 7 Chair Audrey Laporte, University of Toronto 11:00 12:00 PM : MODELING THE TOP TAIL OF THE MEDICAL CARE SPENDING DISTRIBUTION Discussant: Andrew Ching, University of Toronto, Canada Primary Author: Matthew C. Harris, University of Tennessee 12:00 1:00 PM : M S D P C Q Discussant: Robert Town, University of Pennsylvania Primary Author: Nathan E. Wilson, Federal Trade Commission 1:00 PM : BOX LUNCH 2:00 PM : ADJOURN Annual Health Econometrics Workshop 2014 8

Social Event & Accomodation AHEW 2014 Lodging All registered participants will be provided up to two nights (Sep 25 & 26) of accommodations at: Park Hyatt Toronto 4 Avenue Road, Toronto, Ontario http://www.parktoronto.hyatt.com/ en/hotel/home.html NEAREST AIRPORT FROM HOTEL: Lester. B. Pearson International Airport, Toronto (http://www.torontopearson.com) GROUND TRANSPORTATION OPTIONS AT PEARSON SIRPORT: http://www.torontopearson.com/en/toandfrom/ground/# Conference Venue The Coop, Brennan Hall, University of St Michael's College, 81 Saint Mary Street, Toronto, Ontario Annual Health Econometrics Workshop 2014 9

Social Event & Accomodation AHEW 2014 Pre-conference Welcome Session (September 25 th, 2014) Ciao Wine Bar 133 Yorkville Ave. Toronto, Ontario http://www.ciaowinebar.com/index.html Conference Dinner (September 26 th, 2014) Pangaea Restaurant 1221 Bay Street Toronto, Ontario Annual Health Econometrics Workshop 2014 9