Table 4.
Instrumental Variable (IV) versus Treatment Model: Summary of Main Coefficients
| IV Estimator | Treatment Model | ||||
|---|---|---|---|---|---|
| Variable | OLS | Model 1 | Model 2 | Model 1 | Model 2 |
| Lagged health | 0.656 (77.14) | 0.656 (77.14) | 0.655 (76.32) | 0.656 (77.32) | 0.652 (77.06) |
| Insurance participation | 1.385 (2.73) | 7.714 (2.30) | 8.867 (1.97) | 7.629 (2.85) | 8.828 (2.80) |
| Residual | — | −6.429 (−2.30) | −6.81 (−1.69) | — | — |
| λ | — | — | — | −3.537 (−2.38) | −4.138 (−2.39) |
| Adjusted R2 | 0.492 | 0.494 | 0.493 | — | — |
| Wald χ2 | — | — | — | 8,434.9(d.f. = 23) | 9,971.6(d.f. = 45) |
Notes:t-values in parentheses; the coefficient of λ is given by σtɛ.