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The Demand for Medical Care in Urban China

  • Mocan, H. Naci
  • Tekin, Erdal
  • Zax, Jeffrey S.

This is the first paper to investigate the determinants of the demand for medical care in the People's Republic of China. It uses a data set that consists of detailed characteristics of 6407 urban households, a continuous measure of health care spending, and price. A two-part model and a discrete factor model are used in the estimation. Household characteristics and work conditions impact the demand for medical care. Income elasticity is around 0.3, indicating medical care is a necessity. Medical care demand is price inelastic, and price elasticity is larger in absolute value for poorer households.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 32 (2004)
Issue (Month): 2 (February)
Pages: 289-304

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Handle: RePEc:eee:wdevel:v:32:y:2004:i:2:p:289-304
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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