The Economics of Dental Care Utilization: A Multivariate Probit Analysis of the Consumption of Cosmetic, Restorative, and Preventative Dental Care

Dental Care Utilization can be classified as one of three types of treatments administered by a dentist: Restorative, Preventative, and Cosmetic Care. In a Ph.D. Dissertation from the University of Kentucky, the author explores the simultaneous choice between these three types of care using a Multivariate Probit Model using the GHK Simulator and Numeric Integration. Data for the research were from the National Medical Expenditure Survey of 1987 which samples households in the United States. The dataset includes information regarding demographic, socioeconomic and medical expenses on a daily basis for the calandar year 1987, which were aggregated to quarterly utilization measurements. Simultaneous probit models reveal interesting patterns of utilization. One finding regarding preventative care is that consumption of preventative care in the current period would be associated with a significantly lower utilization of both Restorative and Cosmetic care in the next period. Another interesting finding is that Restorative and Cosmetic care are substitutes for each other. Cosmetic care might be a luxury good relative to Restorative care.