Catastrophic Medical Expenditure Risk
AbstractMedical expenditure risk can pose a major threat to living standards. We derive decomposable measures of catastrophic medical expenditure risk from reference-dependent utility with loss aversion. We propose a quantile regression based method of estimating risk exposure from cross-section data containing information on the means of financing health payments. We estimate medical expenditure risk in seven Asian countries and find it is highest in Laos and China, and is lowest in Malaysia. Exposure to risk is generally higher for households that have less recourse to self-insurance, lower incomes, wealth and education, and suffer from chronic illness.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-078/3.
Date of creation: 24 Jul 2012
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medical expenditures; catastrophic payments; downside risk; reference-dependent utility; Asia;
Other versions of this item:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
- I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-29 (All new papers)
- NEP-HEA-2012-07-29 (Health Economics)
- NEP-RMG-2012-07-29 (Risk Management)
- NEP-SEA-2012-07-29 (South East Asia)
- NEP-UPT-2012-07-29 (Utility Models & Prospect Theory)
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