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An Economic Analysis of Health Care in China

Author

Listed:
  • Gregory C. Chow

    (Princeton University)

Abstract

After describing the institutions for health care in China as they evolved since 1949, this paper presents statistical demand functions for health care. It applies the demand functions to explain the rapid increase in health care demand and the resulting rapid increase in price when supply failed to increase. The failure in increase in supply was traced to the system of public supply of healthcare in China. The reform experience of Suqian city in the privatization of healthcare is reported to demonstrate the positive effect of privatization on supply. The government's health care program for the urban and rural population is described and an evaluation of it is provided.

Suggested Citation

  • Gregory C. Chow, 2006. "An Economic Analysis of Health Care in China," Working Papers 70, Princeton University, Department of Economics, Center for Economic Policy Studies..
    • Handle: RePEc:pri:cepsud:132
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    File URL: https://gceps.princeton.edu/wp-content/uploads/2017/01/132chow.pdf
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    References listed on IDEAS

    as
    1. Gregory C. Chow, 2006. "Rural Poverty in China: Problem and Policy," Working Papers 68, Princeton University, Department of Economics, Center for Economic Policy Studies..
    2. Gregory C. Chow, 2006. "Rural Poverty in China: Problem and Policy," Working Papers 68, Princeton University, Department of Economics, Center for Economic Policy Studies..
    3. Gregory Chow & Yan Shen, 2006. "Demand for education in China," International Economic Journal, Taylor & Francis Journals, vol. 20(2), pages 129-147.
    4. repec:pri:cepsud:134chow is not listed on IDEAS
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    Cited by:

    1. Hao Zhang & Huimei Hu & Christina Wu & Hai Yu & Hengjin Dong, 2015. "Impact of China's Public Hospital Reform on Healthcare Expenditures and Utilization: A Case Study in ZJ Province," PLOS ONE, Public Library of Science, vol. 10(11), pages 1-19, November.
    2. Judy Xu & Gordon Liu & Guoying Deng & Lin Li & Xianjun Xiong & Kisalaya Basu, 2015. "A Comparison of Outpatient Healthcare Expenditures Between Public and Private Medical Institutions in Urban China: An Instrumental Variable Approach," Health Economics, John Wiley & Sons, Ltd., vol. 24(3), pages 270-279, March.

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    More about this item

    Keywords

    China;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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