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New estimates of elasticity of demand for healthcare in rural China


  • Zhou, Zhongliang
  • Su, Yanfang
  • Gao, Jianmin
  • Xu, Ling
  • Zhang, Yaoguang


Only limited empirical studies reported own-price elasticity of demand for health care in rural China. Neither research on income elasticity of demand for health care nor cross-price elasticity of demand for inpatient versus outpatient services in rural China has been reported. However, elasticity of demand is informative to evaluate current policy and to guide further policy making.

Suggested Citation

  • Zhou, Zhongliang & Su, Yanfang & Gao, Jianmin & Xu, Ling & Zhang, Yaoguang, 2011. "New estimates of elasticity of demand for healthcare in rural China," Health Policy, Elsevier, vol. 103(2), pages 255-265.
  • Handle: RePEc:eee:hepoli:v:103:y:2011:i:2:p:255-265 DOI: 10.1016/j.healthpol.2011.09.005

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    References listed on IDEAS

    1. Holmer, Martin, 1984. "Tax policy and the demand for health insurance," Journal of Health Economics, Elsevier, vol. 3(3), pages 203-221, December.
    2. Deaton, Angus, 1987. "Estimation of own- and cross-price elasticities from household survey data," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 7-30.
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    6. Lavy, V. & Quigley, J.M., 1993. "Willingness to Pay for the Quality and Intensity of Midical Care; Low- Income Households in Ghana," Papers 94, World Bank - Living Standards Measurement.
    7. Getzen, Thomas E., 2000. "Health care is an individual necessity and a national luxury: applying multilevel decision models to the analysis of health care expenditures," Journal of Health Economics, Elsevier, vol. 19(2), pages 259-270, March.
    8. Davis, Karen & Russell, Louise B, 1972. "The Substitution of Hospital Outpatient Care for Inpatient Care," The Review of Economics and Statistics, MIT Press, vol. 54(2), pages 109-120, May.
    9. Zhongliang Zhou & Jianmin Gao & Qinxiang Xue & Xiaowei Yang & Ju'e Yan, 2009. "Effects of Rural Mutual Health Care on outpatient service utilization in Chinese village medical institutions: evidence from panel data," Health Economics, John Wiley & Sons, Ltd., vol. 18(S2), pages 129-136, July.
    10. Mei-ling Sheu & Teh-wei Hu & Theodore E. Keeler & Michael Ong & Hai-Yen Sung, 2004. "The effect of a major cigarette price change on smoking behavior in california: a zero-inflated negative binomial model," Health Economics, John Wiley & Sons, Ltd., vol. 13(8), pages 781-791.
    11. Wang, Hong & Zhang, Licheng & Hsiao, William, 2006. "Ill health and its potential influence on household consumptions in rural China," Health Policy, Elsevier, vol. 78(2-3), pages 167-177, October.
    12. Joseph P. Newhouse & Charles E. Phelps, 1976. "New Estimates of Price and Income Elasticities of Medical Care Services," NBER Chapters,in: The Role of Health Insurance in the Health Services Sector, pages 261-320 National Bureau of Economic Research, Inc.
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    14. Wedig, Gerard J., 1988. "Health status and the demand for health : Results on price elasticities," Journal of Health Economics, Elsevier, vol. 7(2), pages 151-163, June.
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    Cited by:

    1. Yoo, Ki-Bong & Ahn, Hong-Uk & Park, Eun-Cheol & Kim, Tae Hyun & Kim, Sun Jung & Kwon, Jeoung A & Lee, Sang Gyu, 2016. "Impact of co-payment for outpatient utilization among Medical Aid beneficiaries in Korea: A 5-year time series study," Health Policy, Elsevier, vol. 120(8), pages 960-966.
    2. Genovaitė Liobikienė & Justina Mandravickaitė, 2013. "Convergence of new members of the EU: changes in household consumption expenditure structure regarding environmental impact during the prosperous period," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 407-427, April.


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