THE UNIVERSITY OF NEW SOUTH WALES
SCHOOL OF ECONOMICS
SEMESTER 2, 2011
STUDENT NAME: ______________________________________________
TUTORIAL (DAY AND TIME):______________________________________
1. TIME ALLOWED – 1 hour
2. READING TIME – 5 minutes
3. THIS EXAMINATION PAPER HAS 12 PAGES
4. INSTRUCTIONS: ANSWER ALL QUESTIONS ON THE EXAM PAPER.
5. THE MID-TERM EXAM IS WORTH 20% OF THE SEMESTER GRADE.
6. ALL ANSWERS MUST BE WRITTEN IN INK. EXCEPT WHERE THEY ARE EXPRESSLY REQUIRED,
PENCILS MAY BE USED ONLY FOR DRAWING, SKETCHING OR GRAPHICAL WORK
8. CANDIDATES MAY USE CALCULATORS
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1 degree of freedom
b. 90 degrees of freedom
c. 93 degrees of freedom
d. 2 degrees of freedom
e. 3 degrees of freedom
SEMESTER 2, 2011
PART A. Multiple Choice
Part B. Problem (Total 30 marks)
Equity of access is a primary goal of many health systems. Determining whether Australia’s system (Medicare) meets this goal is an important research question. Consider the case of access to general practitioners (GPs). The probit results presented below in Table 4 are part of an analysis aimed at answering whether there is equitable access to GP services where access is defined on the basis of health needs rather than ability to pay.
The data consists of a sample of 3207 single females who were surveyed throughout Australia in
1995. The “dependent variable” for the study was VISIT, an indicator variable that was equal to one if the women had visited a GP in the last two weeks and zero otherwise.
The sample has been divided into two subsets depending on whether the women are less than 40 years old (the “young” sub-sample) or whether they are greater than 40 years old (the “old” subsample). Table 4 presents estimation results (variable definitions follow the table).
Table 4: Probit estimates for