Ordinal response generalized difference in differences with varying categories: The health effect of a disability program in Korea

Young Sook Kim, Myoung Jae Lee

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

We consider the use of difference in differences (DD) to evaluate the effect of an activity assistance program on the health of severely disabled Koreans. There are, however, 2 problems in the data: the number of response categories for self-assessed health changed over the waves of the repeated cross-section survey and the “parallel untreated response path” assumption for DD is suspect. We show how to overcome these problems by renormalizing parameters and applying “generalized difference in differences (GDD).” We find a significantly positive effect of the program with DD, but not with GDD. Our solutions should prove useful in applications in which one or other of these problems arise.

Original languageEnglish
Pages (from-to)1123-1131
Number of pages9
JournalHealth Economics (United Kingdom)
Volume26
Issue number9
DOIs
Publication statusPublished - 2017 Sept

Bibliographical note

Publisher Copyright:
Copyright © 2017 John Wiley & Sons, Ltd.

Keywords

  • difference in differences
  • generalized difference in differences
  • ordinal response
  • self-assessed health

ASJC Scopus subject areas

  • Health Policy

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