The effect of activity-based financing on hospital length of stay for elderly patients suffering from heart diseases in Norway

Table 3 Hausman-Taylor estimation at the cohort level

Standard errors in parentheses.
*p < 0.05, **p < 0.01, ***p < 0.001.
¹Myocardial infarction is the reference dummy for both angina pectoris and congestive heart failure.
²Group 1 consists of catchment areas where the intervention center is the only hospital.
³Group 3 which consists of catchment areas with only local hospitals is the reference dummy for both Group 1 and Group 2.
⁴Group 2 consists of catchment areas with both intervention centers and local hospitals.
⁵We choose the exogenous variables X1 = (ABF, Group1, Group2, Year), Z1 = (Female) to implement the HT estimator.
⁶Hausman’s test based on the difference between the within and HT estimator gives an observed $x_{9}^{2} = 18.91$ . Compared to the Hausman’s test for fixed and random effects which gives $x_{10}^{2} = 89.98$ , we can see that HT approach does improve the efficiency in the fixed effects model.

ISSN: 1472-6963