Timothy J. Halliday () (Department of Economics, University of Hawaii at Manoa, Institute for the Study of Labor (IZA)) Mijung Park () (Department of Nursing, School of Nursing & Dental Hygiene, University of Hawaii at Manoa)
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This article documents a robust negative relationship between household size and medical expenditures. Residing in a larger family is associated with less consumption of medical care ceteris paribus. An additional household member is associated with between $255.60 and $277.36 fewer expenditures on health care on average. Using quantile regression, we found that the magnitude of cost saving associated with living in a larger family increases with the demand for medical care. Based on these findings, we conclude that larger family size may be beneficial to a person’s health. Future research is needed to verify the mechanisms underlying this correlation.
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Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number
200916.