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National Health Insurance and Technology Adoption: Evidence from Taiwan

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  • Shin-Yi Chou
  • Jin-Tan Liu
  • James K. Hammitt

Abstract

Generous health-insurance coverage may encourage hospitals to acquire and employ more advanced medical technologies. The authors examine the effects of Taiwan's 1995 implementation of National Health Insurance on technology adoption, ownership, and use by comparing changes in adoption, ownership, and use rates by private hospitals with changes by public nonteaching and public teaching hospitals. Using random-effect panel probit and tobit models, the article finds strong empirical evidence that third-party payment increases the probability of technology adoption, ownership, and use. (JEL "H4", "I") Copyright 2004 Western Economic Association International.

Suggested Citation

  • Shin-Yi Chou & Jin-Tan Liu & James K. Hammitt, 2004. "National Health Insurance and Technology Adoption: Evidence from Taiwan," Contemporary Economic Policy, Western Economic Association International, vol. 22(1), pages 26-38, January.
  • Handle: RePEc:bla:coecpo:v:22:y:2004:i:1:p:26-38
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    References listed on IDEAS

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    Cited by:

    1. Jos L. T. Blank & Vivian G. Valdmanis, 2015. "Technology diffusion in hospitals: a log odds random effects regression model," International Journal of Health Planning and Management, Wiley Blackwell, vol. 30(3), pages 246-259, July.
    2. Freedman, Seth & Lin, Haizhen & Simon, Kosali, 2015. "Public health insurance expansions and hospital technology adoption," Journal of Public Economics, Elsevier, vol. 121(C), pages 117-131.
    3. Liu, Ya-Ming & Kao Yang, Yea-Huei & Hsieh, Chee-Ruey, 2011. "The determinants of the adoption of pharmaceutical innovation: Evidence from Taiwan," Social Science & Medicine, Elsevier, vol. 72(6), pages 919-927, March.
    4. Kamhon Kan & Yen-Ling Lin, 2009. "The labor market effects of national health insurance: evidence from Taiwan," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 311-350, April.
    5. Chou, Shin-Yi & Grossman, Michael & Liu, Jin-Tan, 2014. "The impact of National Health Insurance on birth outcomes: A natural experiment in Taiwan," Journal of Development Economics, Elsevier, vol. 111(C), pages 75-91.
    6. Hung, Jung-Hua & Chang, Li, 2008. "Has cost containment after the National Health Insurance system been successful: Determinants of Taiwan hospital costs," Health Policy, Elsevier, vol. 85(3), pages 321-335, March.

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    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods

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