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Multivariate Cointegration Technique Estimation of Health Demand Function: The Case of Croatia

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Author Info

  • Josip Tica

    ()
    (Faculty of Economics and Business, University of Zagreb)

  • Šime Smolić

    ()
    (Faculty of Economics and Business, University of Zagreb)

Abstract

In this paper multivariate Johansen cointegration technique is used in order to estimate health demand function in Croatia. Empirical estimate is based on the theoretical foundation of Grossman's model. According to the estimate, the number of physician visits in Croatia is a function of percentage of urban population, GDP, number of beds per 100 000 people, number of physicians per 100 000 people and total fertility rate. All estimated systems demonstrated strong feedbacks indicating number of endogenous variables greater than one.

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File URL: http://web.efzg.hr/repec/pdf/Clanak%2007-06.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Faculty of Economics and Business, University of Zagreb in its series EFZG Working Papers Series with number 0706.

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Length: 14
Date of creation: 29 May 2007
Date of revision:
Handle: RePEc:zag:wpaper:0706

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Keywords: health demand function; health capital; Grossman's model; Croatian health care system; Johansen cointegration technique;

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