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Demand for traditional medicine in Taiwan: a mixed Gaussian-Poisson model approach

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  • Steven T. Yen

    (Department of Applied Economics and Statistics, University of Nevada, Reno, NV, USA)

  • Chao-Hsiun Tang

    (School of Health Care Administration, Taipei Medical University, Taiwan, Republic of China)

  • Shew-Jiuan B. Su

    (Department of Geography, National Kaohsiung Normal University, Taiwan, Republic of China)

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    Abstract

    Hurdle count models are used to examine the participation and consumption decisions in Chinese medicine use. Motivated by a household production model, a second censoring mechanism is introduced into existing single-hurdle models, and the resulting specification accommodates conscientious abstainers, as well as economic non-consumers, and admits excessive zeros in the sample. In contrast to previous studies that found few predictors, empirical results based on a Taiwanese national sample suggest that Western medicine is a gross substitute to Chinese medicine, and both time price and money price play more important roles than income. Insurance, lifestyle and demographics also determine the use of Chinese medicine. Copyright © 2001 John Wiley & Sons, Ltd.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 10 (2001)
    Issue (Month): 3 ()
    Pages: 221-232

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    Handle: RePEc:wly:hlthec:v:10:y:2001:i:3:p:221-232

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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    1. Mullahy, John, 1998. "Much ado about two: reconsidering retransformation and the two-part model in health econometrics," Journal of Health Economics, Elsevier, vol. 17(3), pages 247-281, June.
    2. Jones, Andrew M., 2000. "Health econometrics," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 6, pages 265-344 Elsevier.
    3. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
    4. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    5. Leung, Siu Fai & Yu, Shihti, 1996. "On the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 197-229.
    6. Cameron, A C & P. K. Trivedi & Frank Milne & J. Piggott, 1988. "A Microeconometric Model of the Demand for Health Care and Health Insurance in Australia," Review of Economic Studies, Wiley Blackwell, vol. 55(1), pages 85-106, January.
    7. Gurmu, Shiferaw, 1998. "Generalized hurdle count data regression models," Economics Letters, Elsevier, vol. 58(3), pages 263-268, March.
    8. Stephen Pudney, 1988. "Estimating engel curves : a generalisation of the P-Tobit model," Finnish Economic Papers, Finnish Economic Association, vol. 1(2), pages 129-147, Autumn.
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    10. Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
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    Cited by:
    1. Alfonso Miranda, 2010. "A double-hurdle count model for completed fertility data from the developing world," DoQSS Working Papers 10-01, Department of Quantitative Social Science - Institute of Education, University of London.
    2. Gregori Baetschmann & Rainer Winkelmann, 2012. "Modelling zero-inflated count data when exposure varies: with an application to sick leave," ECON - Working Papers 061, Department of Economics - University of Zurich.
    3. Kajal Lahiri & Guibo Xing, 2002. "An Empirical Analysis of Medicare-eligible Veterans' Demand for Outpatient Health Care Services," Discussion Papers 02-01, University at Albany, SUNY, Department of Economics.

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