Table 3.

Estimated Coefficients

Interpretation	Parameter	Simulated Minimum Distance
		Estimate	95% confidence
Mean of medical spending shock	μ	−1.0005 ***	−1.2283	−0.7727
Male	δ1	−0.5568 ***	−0.6088	−0.5048
Salary/1,000	δ2	−0.1129 ***	−0.1854	−0.0403
Census Division 2 - Middle Atlantic	δ3	−0.1290 *	−0.2699	0.0120
Census Division 3 - East North Central	δ4	0.4612 ***	0.3675	0.5549
Census Division 4 - West North Central	δ5	0.2246 ***	0.1120	0.3371
Census Division 5 - South Atlantic	δ6	0.2912 ***	0.2080	0.3745
Census Division 6 - East South Central	δ7	0.2277 ***	0.1308	0.3247
Census Division 7 - West South Central	δ8	0.2511 ***	0.1609	0.3412
Census Division 8 - Mountain	δ9	0.0389 **	0.0056	0.0722
Census Division 9 - Pacific	δ10	−0.0456	−0.1004	0.0093
Age	δ11	0.1049 ***	0.0931	0.1167
Age Squared/100	δ12	−0.2102 ***	−0.2375	−0.1829
Age Cubed/1,000	δ13	0.2066 ***	0.1773	0.2359
Missing 2003	δ14	0.7034 ***	0.6414	0.7653
2003 Spending* Nonmissing 2003	δ15	0.3661 ***	0.3428	0.3894
2003 Spending* Nonmissing 2003 Squared/1,000	δ16	−3.0281 ***	−3.7135	−2.3427
2003 Spending* Nonmissing 2003 Cubed/1,000,000	δ17	1.4863	−1.3739	4.3465
In Family of 2	δ18	0.0873 **	0.0166	0.1581
In Family of 3	δ19	−0.0551 ***	−0.0963	−0.0138
Standard deviation of medical spending shock	σ	0.0371 **	0.0067	0.0676
Coefficient of absolute risk aversion	γ	0.0769 ***	0.0223	0.1314
Price sensitivity parameter	β	0.3319 ***	0.1485	0.5153
N (observations)		101,343
R (draws of ind. het.)		5
stepsize (in thousands)		0.001

^***p<0.01,

^**p<0.05,

^*p<0.1

Confidence intervals obtained by subsampling. See text for details.

Census Division 1 - New England and In Family of 1 omitted.