where, as before, Rjt is the reform indicator, and
j and
t are the county and calendar year xed
eects, respectively. yijt measures total out-of-pocket medical expenditures among members of
household i for which the health shock is dened.26 Sickijt is an indicator of whether any member
of the household (for which the health shock is dened) suered from any illness in the past four
weeks, which controls for the mean dierence in yijt between households reporting any sickness and
those reporting none.27
Table 8 reports the coecient estimate on the reform indicator. In column (1) of Table 8,
I report the estimated coecient b1 where the dependent variable is an indicator for having paid
positive out-of-pocket medical expenditure. Coecient b1 measures whether the likelihood of paying
for medical expenditure out-of-pocket for treating the illness changes after the reform. As shown,
the reform reduces the incidence of positive health expenditure by about 5 percentage points. The
reform does not appear to have any impact on total health expenditure at the intensive margin (i.e.,
log out-of-pocket expenditure). The estimated coecient in column (2) is insignicantly dierent