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Estimates of the Demand for Medical Care under Different Functional Forms

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  • Hunt-McCool, Janet
  • Kiker, B F
  • Ng, Ying Chu
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    Abstract

    We estimate price and income elasticities from a linear, log-linear, and the almost ideal demand model (with and without an adjustment for selectivity bias) in an effort to show that special attention should be paid to the underlying assumptions of consumer behaviour when estimating a medical care demand model. The literature on medical care utilization is extended by incorporating two major components of spending as separate demands in a system of medical care spending. We find that estimates of elasticities vary depending on the functional form of the estimating equation, thus questioning the usefulness for policy purposes of single estimates of elasticities. Copyright 1994 by John Wiley & Sons, Ltd.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

    Volume (Year): 9 (1994)
    Issue (Month): 2 (April-June)
    Pages: 201-18

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    Handle: RePEc:jae:japmet:v:9:y:1994:i:2:p:201-18

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    Cited by:
    1. Massimo Filippini & Giuliano Masiero & Karine Moschetti, 2010. "Dispensing practices and antibiotic use," Working Papers 1006, Department of Economics and Technology Management, University of Bergamo.
    2. Giuliano Masiero & Massimo Filippini & Matus Ferech & Herman Goossens, 2007. "Determinants of outpatient antibiotic consumption in Europe: bacterial resistance and drug prescribers," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 0702, USI Università della Svizzera italiana.
    3. Jofre-Bonet, Mireia & Petry, Nancy M., 2008. "Trading apples for oranges?: Results of an experiment on the effects of Heroin and Cocaine price changes on addicts' polydrug use," Journal of Economic Behavior & Organization, Elsevier, vol. 66(2), pages 281-311, May.
    4. Massimo Filippini & Giuliano Masiero & Karine Moschetti, 2009. "Physician dispensing and antibiotic prescriptions," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 0908, USI Università della Svizzera italiana.
    5. Wang, Shinn-Shyr & Stiegert, Kyle W. & Dhar, Tirtha Pratim, 2005. "Strategic Pricing Behavior under Asset Value Maximization," 2005 Annual meeting, July 24-27, Providence, RI 19198, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Filippini, Massimo & Masiero, Giuliano & Moschetti, Karine, 2006. "Socioeconomic determinants of regional differences in outpatient antibiotic consumption: Evidence from Switzerland," Health Policy, Elsevier, vol. 78(1), pages 77-92, August.
    7. Ian J. Irvine & William A. Sims, 2002. "A simple and efficient method for estimating the magnitude and precision of welfare changes: comment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 81-83.

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