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Total expenditure elasticity of spending on self-treatment and professional healthcare: a case of Russia

Author

Listed:
  • Evguenii Zazdravnykh

    (HSE University
    St. Petersburg University)

  • Andrey Aistov

    (HSE University)

  • Ekaterina Aleksandrova

    (Sechenov University)

Abstract

The studies on the demand for healthcare in low- and middle-income countries rarely take into consideration the fact that many people spend their income on self-treatment and professional treatment. The estimation of the income elasticity of demand for self-treatment and professional treatment can show a more precise picture of the affordability of professional care. This paper contributes to the discussion around estimates of income elasticity of health spending and discussion whether professional care and self-treatment are close to a luxury good and inferior good respectively in a middle-income country. We apply the switching regression model to explain the choice between self-treatment and professional healthcare via estimates of the income elasticity. Estimates are made with the use of the Russian Longitudinal Monitoring Survey — Higher School of Economics (RLMS-HSE), a nationally representative survey. While individual expenditure on professional treatment is higher than that on self-treatment, our estimates show that expenses on professional treatment can be income inelastic except when spending on medicines prescribed by a physician that are elastic. The results also indicate that cost of self-treatment is income elastic. In all cases, the considered income elasticities are statistically insignificant between professional and self-treatment.

Suggested Citation

  • Evguenii Zazdravnykh & Andrey Aistov & Ekaterina Aleksandrova, 2024. "Total expenditure elasticity of spending on self-treatment and professional healthcare: a case of Russia," International Journal of Health Economics and Management, Springer, vol. 24(1), pages 81-105, March.
    • Handle: RePEc:kap:ijhcfe:v:24:y:2024:i:1:d:10.1007_s10754-023-09353-0
    DOI: 10.1007/s10754-023-09353-0
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    References listed on IDEAS

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