This paper estimates treatment effects of managed care plans on the utilization of health care services using data from two contemporaneous, nationally representative household surveys from the USA. The paper exploits recent advances in simulation-based econometrics to take the endogeneity of...

SUMMARY In this paper, we estimate a copula‐based bivariate dynamic hurdle model of prescription drug and nondrug expenditures to test the cost‐offset hypothesis, which posits that increased expenditures on prescription drugs are offset by reductions in other nondrug expenditures. We apply...