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Total expenditure elasticity of healthcare spending in Russia

Author

Listed:
  • Evguenii A. Zazdravnykh

    (HSE University, St. Petersburg, Russia)

  • Andrey V. Aistov

    (HSE University, Niznhy Novgorod, Russia)

  • Ekaterina A. Aleksandrova

    (HSE University, St. Petersburg, Russia
    ITMO University, St. Petersburg, Russia)

Abstract

In this study we estimate the income elasticity of spending on different healthcare services and medication in Russia, taking into account the non-linear relationship between income level and expenditure. We employ the RLMS-HSE data, 2006–2017, to estimate the elasticities at household level. Our findings show these elasticities have not changed over the years. Additionally, we show that low-income and high-income households demon­strate different levels of elasticities, which is consistent with the fact that healthcare is less affordable for the poor. The study confirms that healthcare and medication are close to luxury level for low-income households and drugs are almost income inelastic for rich households. The results could help to reveal which services are the least affordable for the population.

Suggested Citation

  • Evguenii A. Zazdravnykh & Andrey V. Aistov & Ekaterina A. Aleksandrova, 2021. "Total expenditure elasticity of healthcare spending in Russia," Russian Journal of Economics, ARPHA Platform, vol. 7(4), pages 326-353, December.
    • Handle: RePEc:arh:jrujec:v:7:y:2021:i:4:p:326-353
    DOI: 10.32609/j.ruje.7.76219
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    Keywords

    income elasticity RLMS HSE health spending household expenditure health.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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