Estimation of copula-based models for lifetime medical costs

Xiao Bing Zhao*, Xian Zhou

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Medical cost data are recorded through medical care and the cost is always related to some sojourn in the health status of the patient. The total medical cost accumulated in the entire lifetime of a life is of great interest to the health insurance industry and government policy makers. In this paper, we develop a new method to assess the lifetime medical cost up to the death time by incorporating the dynamics of change in the health status of the patient based on incomplete data. A copula model is proposed to fit the cost lifetime medical data subject to a terminal event (death). A two-stage estimation procedure is applied to draw the statistical inference of the marginals and the copula parameters. The asymptotic properties of the estimators are established, and a simulation is performed to evaluate the proposed model and estimation methods.

Original languageEnglish
Pages (from-to)897-915
Number of pages19
JournalAnnals of the Institute of Statistical Mathematics
Issue number5
Publication statusPublished - 26 Oct 2015

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