Bibliographical noteFunding Information:
The research reported here was supported in part by a grant from the Dutch health insurance organization Zilveren Kruis which also provided the data base used in this article, a fact which the authors gratefully acknowledge. The conclusions and opinions are those of the authors and do not necessarily reflect the views of the Zilveren Kruis orgaxiization. The authors would like to thank Jan van Dalen, Jose Geurts, Gerard van de Kuilen and Brigitte Kerbusch for assistance, and the members of the research project 'Health insurance and medical consumption' and an anonymous referee for their comments on earlier drafts of this article. A preliminary version of this article was presented at the conference on Disaggregation in Econometric Modelling, held at the University of Cambridge, 13-14 April 1987.