The impact of cognitive impairment on health care
A striking finding of this research that the effect of cognitive status remains relatively constant over age
Abstract: Evaluation of health care utilization is prominent in the economics literature, generally concentrating on the impact of certain health conditions on resource use, using individual level self-reported data. However, the important additional impact of cognitive impairment has not yet been explored. We now propose a model that assesses the impact of word recall, a standard validated measure of cognitive status, on health care utilization. We develop an approach that simultaneously, considers, the count nature of the data, recall bias and reporting behaviours, and the role of cognitive state, in all of these processes. Our model also introduces an individual specific random parameter. Using the Survey of Health, Ageing and Retirement in Europe data, we demonstrate that without modelling for unobserved heterogeneity via captivity effects and random parameters, the effect of cognitive status is largely underestimated. A striking finding is that the effect of cognitive status is relatively constant over age.
Speaker: Professor Brenda Gannon is a Professor of Health Economics at the Centre for the Business and Economics of Health, The University of Queensland. Brenda is an international expert in the field of health and ageing economics and health econometrics. Her research carries a dual role, (1) as a methodologist (applied health economist and econometrician using big and complex data), utilising health economics theory and concepts to test the validity of causal hypotheses, (2) collaborator across all Faculties leading critical economic evaluations. She is a member of the Australian Medical Services Advisory Committee (MSAC) Evaluation Sub Committee.