We examine the effect of reference health on the demand for medical care. We propose and empirically implement a dynamic model of demand for medical care that includes reference health, an average of previous health states. We find that gain or loss from reference health significantly affects...

We consider Bayesian estimation of restricted conditional moment models with linear regression as a particular example. The standard practice in the Bayesian literature for semiparametric models is to use flexible families of distributions for the errors and assume that the errors are...