Use of econometric models to estimate expenditure shares.

Journal Article (Journal Article)


To investigate the use of regression models to calculate disease-specific shares of medical expenditures.

Data sources/study setting

Medical Expenditure Panel Survey (MEPS), 2000-2003.

Study design

Theoretical investigation and secondary data analysis.

Data collection/extraction methods

Condition files used to define the presence of 10 medical conditions.

Principal findings

Incremental effects of conditions on expenditures, expressed as a fraction of total expenditures, cannot generally be interpreted as shares. When the presence of one condition increases treatment costs for another condition, summing condition-specific shares leads to double-counting of expenditures.


Condition-specific shares generated from multiplicative models should not be summed. We provide an algorithm that allows estimates based on these models to be interpreted as shares and summed across conditions.

Full Text

Duke Authors

Cited Authors

  • Trogdon, JG; Finkelstein, EA; Hoerger, TJ

Published Date

  • August 2008

Published In

Volume / Issue

  • 43 / 4

Start / End Page

  • 1442 - 1452

PubMed ID

  • 18248403

Pubmed Central ID

  • PMC2517274

Electronic International Standard Serial Number (EISSN)

  • 1475-6773

International Standard Serial Number (ISSN)

  • 0017-9124

Digital Object Identifier (DOI)

  • 10.1111/j.1475-6773.2007.00827.x


  • eng