Equation 1: e star, a latent variable that represents the individual's demand for treatment intensity, is equal to X, a vector of client characteristics, multiplied times a coefficient, beta, plus y, a dummy variable equal to one when a client enters a facility that accepts earmarked funds and zero otherwise, multiplied by coefficient gamma, plus epsilon, a normally distributed error term normalized to one.

Back to Equation 8.1

This page was last updated on May 16, 2008.

SAMHSA, an agency in the Department of Health and Human Services, is the Federal Government's lead agency for improving the quality and availability of substance abuse prevention, addiction treatment, and mental health services in the United States.