@techreport{f891912b52924b178b23c4b3411592b4,
title = "Efficiency of Health Investment: Education or Intelligence?",
abstract = "In this paper we hypothesize that education is associated with a higher efficiency of health investment, yet that this efficiency advantage is solely driven by intelligence. We operationalize efficiency of health investment as the probability of dying conditional on a certain hospital diagnosis, and estimate a multistate structural equation model with three states: (i) healthy, (ii) ill (in hospital), and (iii) death. We use data from a Dutch cohort born around 1940 that links intelligence tests at age 12 to later-life hospitalization and mortality records. The results suggest that higher Intelligence induces the higher educated to be more efficient users of health investment - intelligent individuals have a clear survival advantage for most hospital diagnoses - yet for unanticipated health shocks and diseases that require complex treatments such as COPD, education still plays a role.",
keywords = "education, intelligence, health, multistate duration model",
author = "G.E. Bijwaard and {van Kippersluis}, H.",
year = "2015",
language = "English",
series = "Tinbergen Discussion paper",
publisher = "Tinbergen Institute",
number = "15-004",
pages = "1--51",
type = "WorkingPaper",
institution = "Tinbergen Institute",
}