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Refining estimates of catastrophic healthcare expenditure: an application in the Indian context

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  • Indrani Gupta
  • William Joe

Abstract

Empirics of catastrophic healthcare expenditure, especially in the Indian context, are often based on consumption expenditure data that inadequately informs about the ability to pay. Use of such data can generate a pro-rich bias in the estimation of catastrophic expenditure thereby suggesting greater concentration of such expenditures among richer households. To improve upon the existing approach, this paper suggests a multidimensional approach to comprehend the incidence of catastrophic expenditure. Here, we integrate the information on health expenditure with other social and economic parameters of deprivation. An empirical illustration is provided by using nationally representative survey on morbidity and healthcare in India. The results of the multidimensional approach are consistent with the theoretical underpinnings of the ability-to-pay approach and emphasizes on the severity of the problem in rural areas. The suggested methodology is flexible and allows for context-specific prioritization in selection of parameters of vulnerability while estimating the incidence of catastrophic expenditures. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Indrani Gupta & William Joe, 2013. "Refining estimates of catastrophic healthcare expenditure: an application in the Indian context," International Journal of Health Economics and Management, Springer, vol. 13(2), pages 157-172, June.
    • Handle: RePEc:kap:ijhcfe:v:13:y:2013:i:2:p:157-172
    DOI: 10.1007/s10754-013-9125-6
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    Cited by:

    1. Ligane Séne & Momath Cissé, 2015. "Catastrophic out-of-pocket payments for health and poverty nexus: evidence from Senegal," International Journal of Health Economics and Management, Springer, vol. 15(3), pages 307-328, September.
    2. A. Akhtar & Nadeem Ahmad & Indrani Roy Chowdhury, 2020. "Socio-economic inequality in catastrophic health expenditure among households in India: A decomposition analysis," Indian Economic Review, Springer, vol. 55(2), pages 339-369, December.
    3. Mohd Zuhair & Ram Babu Roy, 2022. "Eliciting relative preferences for the attributes of health insurance schemes among rural consumers in India," International Journal of Health Economics and Management, Springer, vol. 22(4), pages 443-458, December.

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    More about this item

    Keywords

    Catastrophic expenditure; Out-of-pocket health expenditure; Targeting; Health policy; India; I1;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health

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