The Robert Day School of Economics and Finance,
Claremont McKenna College
500 E. Ninth Street
Claremont, CA 91711
NBER Working Papers and Publications
|June 2010||Estimating Heterogeneous Treatment Effects of Medicaid Expansions on Take-up and Crowd-out|
with John C. Ham, Lara Shore-Sheppard: w16112
Economists have devoted considerable resources to estimating local average treatment effects of expansions in Medicaid eligibility for children. In this paper we use random coefficients linear probability models and switching probit models to estimate a more complete range of effects of Medicaid expansion on Medicaid take-up and crowd-out of private insurance. We demonstrate how to estimate, for Medicaid expansions, the average effect among all of those eligible, the average effect for a randomly chosen person, the effect for a marginally eligible child, and the average effect for those affected by a nonmarginal counterfactual policy change. We then estimate the average effect of Medicaid expansions among all eligible children and the average effect for those affected by a nonmarginal cou...