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The Effect of Time Price on the Demand for Medical-Care Services

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  • Rosanna M. Coffey
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    Abstract

    This paper analyzes the effect of time price on medical-care demand and describes use of a reservation-wage question from a household survey to develop a measure of time price for obtaining medical care. A comprehensive three-equation model of the demand for female medical-care services examines choice of provider, entry demand, and the demand for physician visits. Results show that provider choice is based primarily on economic factors and that an expected high time price discourages women from choosing a public provider and from seeking gynecological, maternal-health, or family-planning services during the year, yet does not influence the number of visits made once care is used. The estimated model shows that medical-care demand equations should control for the type of provider chosen and the opportunity cost of time for alternative activities when testing for a negative time price effect of obtaining medical care.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 18 (1983)
    Issue (Month): 3 ()
    Pages: 407-424

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    Handle: RePEc:uwp:jhriss:v:18:y:1983:i:3:p:407-424

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    Web page: http://jhr.uwpress.org/

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    Cited by:
    1. Mary Zimmerman Murphy, 1987. "The Importance of Sample Selection Bias in the Estimation of Medical Care Demand Equations," Eastern Economic Journal, Eastern Economic Association, Eastern Economic Association, vol. 13(1), pages 19-29, Jan-Mar.
    2. Wagner, Todd H. & Hu, Teh-wei & Duenas, Grace V. & Pasick, Rena J., 2000. "Willingness to pay for mammography: item development and testing among five ethnic groups," Health Policy, Elsevier, Elsevier, vol. 53(2), pages 105-121, September.
    3. Daniele Fabbri & Chiara Monfardini, 2006. "Rationing The Public Provision Of Healthcare In The Presence Of Private Supplements: Evidence From The Italian Nhs," CHILD Working Papers, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY wp21_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    4. Angulo, Ana María & Barberán, Ramón & Egea, Pilar & Mur, Jesús, 2011. "An analysis of health expenditure on a microdata population basis," Economic Modelling, Elsevier, Elsevier, vol. 28(1-2), pages 169-180, January.
    5. Akbar Marvasti, 2006. "A Contingent Valuation of Customer Delay in Medical Services," Eastern Economic Journal, Eastern Economic Association, Eastern Economic Association, vol. 32(1), pages 31-45, Winter.
    6. Wagner, Todd H. & Hu, Teh-wei & Hibbard, Judith H., 2001. "The demand for consumer health information," Journal of Health Economics, Elsevier, Elsevier, vol. 20(6), pages 1059-1075, November.

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