The determinants of demand for private medical insurance: evidence from the British household panel survey
AbstractThis paper examines the determinants of demand for private medical insurance in Great Britain using data from the British Household Panel Survey (BHPS). The main focus is the impact of quality and supply of public health care and the availability of private alternatives on demand. The personal characteristics that determine the demand for private medical insurance are also investigated. The empirical analysis uses a random effects probit model to investigate the individual purchase decision using a six-year panel from the BHPS. The results here suggest that income, age, sex, political party support and employment status are key determinants of the demand for private medical insurance as are being a smoker and living in an owner occupied house. The key findings are that regional waiting lists and public expenditure on health are significant determinants of the demand for private medical insurance indicating that recent increases in health expenditure and reductions in waiting lists may have crowded out some private insurance.
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Bibliographic InfoPaper provided by University College London in its series Open Access publications from University College London with number http://discovery.ucl.ac.uk/18591/.
Date of creation: Oct 2003
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Other versions of this item:
- Gavin Wallis, 2004. "The Determinants Of Demand For Private Medical Insurance: Evidence From The British Household Panel Survey," Royal Economic Society Annual Conference 2004 84, Royal Economic Society.
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- Jofre-Bonet, Mireia, 2000. "Health care: private and/or public provision," European Journal of Political Economy, Elsevier, vol. 16(3), pages 469-489, September.
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- Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
- Karlsson, Martin & Klohn, Florian & Rickayzen, Ben, 2012. "Are the Dimensions of Private Information More Multiple than Expected? Information Asymmetries in the Market of Supplementary Private Health Insurance in England," Darmstadt Discussion Papers in Economics 57826, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- Kiil, Astrid, 2012. "What characterises the privately insured in universal health care systems? A review of the empirical evidence," Health Policy, Elsevier, vol. 106(1), pages 60-75.
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