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HSA 4700 Fall 2018

Assignment 5

Locate the following article using FAU electronic library resources to answer the questions

below: Wen, H., Borders, T. F., & Druss, B. G. (2016). Number of Medicaid Prescriptions Grew,

Drug Spending Was Steady in Medicaid Expansion States. Health Affairs, 35(9), 1604-1607.

a. Name the dependent and the main independent variables (identify them separately).

b. What is one of the main hypotheses? What is the treatment/stimulus? State them in your

own words.

c. Name the treatment and the comparison groups (identify them separately). Explain the

rationale behind this comparison.

d. Calculate the difference-in-differences (DD) estimate based on the results presented in the

first two columns of Exhibit 3 (2011-13 and 2014) for prescription drug spending. Interpret the

DD estimate in a single sentence.

e. Consider again the same results as above in part d. Provide a graphical representation of these

findings together with the implied counterfactual. Make sure to label the axes and the curves.