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A model of the demand for medical and health services in Peninsular Malaysia

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  • Heller, Peter S.

Abstract

This paper provides an empirical analysis of the determinants of the demand for medical services in Peninsular Malaysia. After eleborating a theoretical model of household demand for medical care in Section II an econometric model is specified and estimated in Sections III, IV, and V. The results indicate that total medical demand, as measured by the absolute volume of outpatient and inpatient consumption, is highly inelastic to the cash price and to the cost in time of utilization. Total medical demand is also inelastic with respect to income. Yet consumers are clearly responsive to the relative prices of alternative sources of medical care. Consumers are also sensitive to the way in which the time of utilization is spent, with high travel and treatment time causing reduced demand for services.

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Bibliographic Info

Article provided by Elsevier in its journal Social Science & Medicine.

Volume (Year): 16 (1982)
Issue (Month): 3 (January)
Pages: 267-284

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Handle: RePEc:eee:socmed:v:16:y:1982:i:3:p:267-284

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Cited by:
  1. Lawson, David, 2004. "Determinants of Health Seeking Behaviour in Uganda - Is It Just Income and User Fees That Are Important?," Development Economics and Public Policy Working Papers 30553, University of Manchester, Institute for Development Policy and Management (IDPM).
  2. Steven F. Koch, 2012. "The Abolition of User Fees and the Demand for Health Care: Re-evaluating the Impact," Working Papers 301, Economic Research Southern Africa.
  3. H. Naci Mocan & Erdal Tekin & Jeffrey S. Zax, 2000. "The Demand for Medical Care in Urban China," NBER Working Papers 7673, National Bureau of Economic Research, Inc.
  4. Hengjin Dong & Adjima Gbangou & Manuela Allegri & Subhash Pokhrel & Rainer Sauerborn, 2008. "The differences in characteristics between health-care users and non-users: implication for introducing community-based health insurance in Burkina Faso," The European Journal of Health Economics, Springer, vol. 9(1), pages 41-50, February.
  5. Randell P. Ellis & Germano M. Mwabu, 2004. "The Demand for Outpatient Medical Care in Rural Kenya," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-140, Boston University - Department of Economics.
  6. Jimenez, Emmanuel & DEC, 1994. "Human and physical infrastructure : public investment and pricing policies in developing countries," Policy Research Working Paper Series 1281, The World Bank.
  7. Magnus Lindelow, 2003. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Economics Series Working Papers WPS/2004-11, University of Oxford, Department of Economics.
  8. Khalid Habbani & Wim Groot & Izabela Jelovac, 2007. "Do free-of-charge public health services impede cost recovery policies in Khartoum state, Sudan?," Post-Print halshs-00257536, HAL.
  9. Silfverberg, Raymunda R., 2014. "The Sponsored Program of the Philippine National Health Insurance - Analyses of the Actual Coverage and Variations Across Regions and Provinces," Discussion Papers DP 2014-19, Philippine Institute for Development Studies.
  10. Steven F. Koch, 2013. "User Fee Abolition in South Africa: Re-Evaluating the Impact?," Working Papers 201331, University of Pretoria, Department of Economics.
  11. Somanathan, Aparnaa, 2008. "The impact of price subsidies on child health care use : evaluation of the Indonesian healthcard," Policy Research Working Paper Series 4622, The World Bank.
  12. McPake, Barbara & Hanson, Kara & Adam, Christopher, 2007. "Two-tier charging strategies in public hospitals: Implications for intra-hospital resource allocation and equity of access to hospital services," Journal of Health Economics, Elsevier, vol. 26(3), pages 447-462, May.
  13. de Bartolome, Charles A. M. & Vosti, Stephen A., 1995. "Choosing between public and private health-care: A case study of malaria treatment in Brazil," Journal of Health Economics, Elsevier, vol. 14(2), pages 191-205, June.
  14. Asfaw, Abay & Braun, Joachim von & Klasen, Stephan, 2004. "How Big is the Crowding-Out Effect of User Fees in the Rural Areas of Ethiopia? Implications for Equity and Resources Mobilization," World Development, Elsevier, vol. 32(12), pages 2065-2081, December.
  15. Deininger, Klaus & Mpuga, Paul, 2004. "Economic and Welfare Effects of the Abolition of Health User Fees : Evidence from Uganda," Policy Research Working Paper Series 3276, The World Bank.
  16. Magnus Lindelow, 2004. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Development and Comp Systems 0409057, EconWPA.
  17. Majid S. Kermani & Hossein Ghaderi & Ayoub Yousefi, 2008. "Demand for medical care in the urban areas of Iran: an empirical investigation," Health Economics, John Wiley & Sons, Ltd., vol. 17(7), pages 849-862.
  18. Gilson, Lucy & Mills, Anne, 1995. "Health sector reforms in sub-Saharan Africa: lessons of the last 10 years," Health Policy, Elsevier, vol. 32(1-3), pages 215-243.
  19. Masahide Kondo & Barbara McPake, 2007. "Making choices between prepayment and user charges in Zambia. What are the results for equity?," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1371-1387.
  20. Ardeshir Sepehri & Robert Chernomas, 2001. "Are user charges efficiency- and equity-enhancing? A critical review of economic literature with particular reference to experience from developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 183-209.
  21. Kara Hanson & Winnie C. Yip & William Hsiao, 2004. "The impact of quality on the demand for outpatient services in Cyprus," Health Economics, John Wiley & Sons, Ltd., vol. 13(12), pages 1167-1180.

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