. Author manuscript; available in PMC: 2013 Oct 1.

Published in final edited form as: Health Serv Res. 2012 Sep 4;47(5):10.1111/j.1475-6773.2012.01459.x. doi: 10.1111/j.1475-6773.2012.01459.x

Table 3.

Two Stage Least Squares Models Estimating Regulation Stringency in the 1^st Stage and Quality in the 2^nd Stage

	1^st Stage Equation:	2^nd Stage Equations
	Regulation Stringency Index (HRSI)	CNA hours per case-mix adjusted day	LPN hours per case-mix adjusted day	RN hours per case-mix adjusted day	Hotel expenditures (in hundreds of thousands of $)	Risk-adjusted ADL decline	Risk-adjusted high-risk pressure sores	Risk-adjusted urinary incontinence
Economic Freedom IV^≠	−1.48^***	—	—	—	—	—	—	—
Regulation Index (HRSI) – Predicted	—	0.013^***	0.013^***	−0.007^***	−0.003	−0.011^≠	−0.003	−0.008^***
Minimum staffing standard index	0.573^***	0.005^*	−0.008^***	0.008^***	0.010^**	0.016^***	0.010^***	0.008^***
Medicaid Per Diem (hundreds of dollars)	0.041	−0.068^***	0.014^**	0.065^***	0.597^***	0.035^***	0.028^***	−0.034^***
Competition	−25.17^***	−0.008	0.151^***	0.058^***	0.456^***	−0.033^***	0.122^***	−0.006
Market income (tens of thousands of dollars)	1.94^**	−0.017^***	−0.024^***	0.026^***	0.122^***	−0.002	0.009^***	0.003^***
Market wage	−1.53	0.158^***	−0.138^***	0.117^***	−0.315^***	0.424^***	−0.158^***	0.079^***
Log (beds)	7.00^***	−0.006^*	−0.013^***	−0.067^***	0.748^***	0.018^***	0.097^***	0.020^***
Log (bed-average bed)²	−1.65^*	0.001	−0.002^***	0.009^***	0.021^***	−0.005^***	−0.002^**	−0.001^**
Non-profit	−7.77^***	0.052^***	−0.006^**	0.045^***	0.320^***	−0.012^***	−0.036^***	0.007^***
Government-owned	−4.45	0.102^***	0.015^**	0.049^***	0.137^***	−0.044^***	−0.073^***	0.027^***
Chain	5.73^*	−0.076^***	−0.008^***	−0.008^***	−0.037^***	0.057^***	−0.002	−0.001
Hospital based	−1.03	−0.027^***	0.103^***	0.277^***	−0.403^***	0.043^***	0.066^***	−0.025^***
2006	−0.16	−0.015^***	0.008^***	−0.007^***	0.049^***	−0.013^***	−0.012^***	−0.005^**
Constant	−0.61	1.245^***	0.718^***	0.137^***	9.273^***	0.213^***	0.227^***	0.552^***
N	100	30,350	30,224	30,246	20,216	29,678	29,574	29,774
R²	0.400	0.064	0.064	0.317	0.607	0.045	0.042	0.016
95% CI_boot for R²		[0.057,0.072]	[0.056,0.074]	[0.303,0.331]	[0.595,0.620]	[0.040,0.05]	[0.037,0.048]	[0.012,0.020]
DWH test of endogeneity: coefficient for residuals from 1^st stage added to OLS		−0.010^*	−0.016^***	0.008^**	−0.010	0.026^***	0.001	0.011^***

Incremental F and minimum eigenvalue statistic for the IV is 11.81 (p<0.01)

0.05 ≤ p < 0.1

^**

0.01 ≤ p ≤ 0.05

^***

p < 0.01

^≠

0.05 ≤ p <0.1 for the one tailed hypothesis: β<0