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The Demand for Medical Care in Urban China

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

Abstract

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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  • Mocan, H. Naci & Tekin, Erdal & Zax, Jeffrey S., 2004. "The Demand for Medical Care in Urban China," World Development, Elsevier, vol. 32(2), pages 289-304, February.
    • Handle: RePEc:eee:wdevel:v:32:y:2004:i:2:p:289-304
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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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