Abstract
We apply three separate panel data estimation methods to examine the diffusion of technologies at the state-level. These methods include the Hausman–Taylor random effects model, the fixed effects vector decomposition, and generalized estimating equations. We discuss the assumptions required of each and assess the stability of our policy results across the three models for a longitudinal study of the diffusion of newer psychotropic technologies. We find a reasonable level of consistency among marginal effects for time varying independent variables between our three estimation methods but some discrepancy in the estimated measure of precision in our empirical application. We find a number of policy conclusions are quite stable across estimation methods and may be of interest to state-level mental health policy decision makers.
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Notes
Clark and Linzer (2013) provide a thoughtful discussion of the trade-offs between fixed and random effect models for the simple linear case, calling into question the routine reliance on Hausman tests to select the suitable alternative.
We are grateful to WHO for providing historic data.
The correlation between these two education measures is 0.5.
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Acknowledgments
Support from NIMH (K01-MH065639) and the North Carolina Translational and Clinical Sciences Institute for creation of the database examined here is gratefully acknowledged. Additional funding for Dr. Beadles was provided by Grant No. 5T32-HS000032 from the Agency for Healthcare Research and Quality and Grant No. TPP 21-023 from the Department of Veteran Affairs Office of Academic Affiliations.
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Domino, M.E., Beadles, C.A. State investments in psychiatric innovation: investigating unmeasured state factors. Health Serv Outcomes Res Method 14, 34–53 (2014). https://doi.org/10.1007/s10742-014-0116-y
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DOI: https://doi.org/10.1007/s10742-014-0116-y