Quantile Regression and Healthcare Costs
Matt Bogard (noreply@blogger.com)
I thought this was a nice statement that speaks to the utility of quantile regression (which holds to any distribution with these issues not just cost data): The quantile regression framework allows
us to obtain a more complete picture of the effects of the covariates on the
health care cost, and is naturally adapted to the skewness and heterogeneity of
the cost data. More: Health care cost data are characterized
by a high level of skewness and heteroscedastic variances… Most of the existing lit