Generalized modeling approaches to risk adjustment of skewed outcomes data.

@article{Manning2005GeneralizedMA,
  title={Generalized modeling approaches to risk adjustment of skewed outcomes data.},
  author={Willard G. Manning and Anirban Basu and John Mullahy},
  journal={Journal of health economics},
  year={2005},
  volume={24 3},
  pages={465-88}
}
There are two broad classes of models used to address the econometric problems caused by skewness in data commonly encountered in health care applications: (1) transformation to deal with skewness (e.g., ordinary least square (OLS) on ln(y)); and (2) alternative weighting approaches based on exponential conditional models (ECM) and generalized linear model (GLM) approaches. In this paper, we encompass these two classes of models using the three parameter generalized Gamma (GGM) distribution… CONTINUE READING