Applied Statistical Model

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The NMES1988 dataset in the AER package contains information on the demand for medical care in the US in 1987 and 1988. Specifically, it has the following columns:

  • visits: Number of physician office visits.
  • nvisits: Number of non-physician office visits.
  • ovisits: Number of physician hospital outpatient visits.
  • novisits: Number of non-physician hospital outpatient visits.
  • emergency: Emergency room visits.
  • hospital: Number of hospital stays.
  • health: Factor indicating self-perceived health status, levels are “poor”, “average” (reference category),
  • “excellent”.

  • chronic: Number of chronic conditions.
  • adl: Factor indicating whether the individual has a condition that limits activities of daily living
  • (“limited”) or not (“normal”).

  • region: Factor indicating region, levels are northeast, midwest, west, other (reference category).
  • age: Age in years (divided by 10).
  • afam: Factor. Is the individual African-American?
  • gender: Factor indicating gender.
  • married: Factor. is the individual married?
  • school: Number of years of education.
  • income: Family income in USD 10,000.
  • employed: Factor. Is the individual employed?
  • insurance: Factor. Is the individual covered by private insurance?
  • medicaid: Factor. Is the individual covered by Medicaid?
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