Acknowledgements We thank the participants of the 2014 Health Economics Study Group in Sheffield for their useful comments and suggestions. We are grateful to Dr. Agne Suziedelyte and Professor Denzil Fiebig for useful discussions on the methodology of the paper. Special thanks to two anonymous referees and Editor Joanna Coast for valuable comments and suggestions. This paper uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this paper, however, are those of the authors and should not be attributed to either DSS or the Melbourne Institute. The Health Economics Research Unit is supported in part by the Chief Scientist Office of the Scottish Government Health and Social Care Directorates.
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