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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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    2. Jianmei Zhao & Hai Zhong, 2015. "Medical expenditure in urban China: a quantile regression analysis," International Journal of Health Economics and Management, Springer, vol. 15(4), pages 387-406, December.
    3. Lu Wencong & Cheng Ying & Mohummed Shofi Ullah Mazumder, 2014. "Competent Alternative Model for the Peasants' Medical Expenditures in China: A Case of New Rural Cooperative Medical Service System (Nrcms) in Zhejiang Province," Prague Economic Papers, Prague University of Economics and Business, vol. 2014(2), pages 233-249.
    4. Nadeem A. Burney & Mohammad Alenezi & Nadia Al-Musallam & Ahmed Al-Khayat, 2016. "The demand for medical care services: evidence from Kuwait based on households’ out-of-pocket expenses," Applied Economics, Taylor & Francis Journals, vol. 48(28), pages 2636-2650, June.
    5. Okeke, Edward N. & Adepiti, Clement A. & Ajenifuja, Kayode O., 2013. "What is the price of prevention? New evidence from a field experiment," Journal of Health Economics, Elsevier, vol. 32(1), pages 207-218.
    6. Chau-kiu Cheung & Raymond Chan & Wing-chung Ho, 2014. "Feeling Close to Fellow Citizens in Hong Kong, Korea, Taiwan, and Thailand," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(1), pages 25-48, October.
    7. Jiale Zhang, 2007. "A DID analysis of the impact of health insurance reform in the city of Hangzhou," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1389-1402, December.
    8. Jiale Zhang, 2007. "A DID analysis of the impact of health insurance reform in the city of Hangzhou," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1389-1402.
    9. Christelle Grobler & Ian C. Stuart, 2007. "Health Care Provider Choice," South African Journal of Economics, Economic Society of South Africa, vol. 75(2), pages 327-350, June.
    10. Máximo Rossi & Patricia Triunfo, 2004. "El Estado de Salud del Adulto Mayor en Uruguay," Documentos de Trabajo (working papers) 1404, Department of Economics - dECON.
    11. Martine Audibert & Yong He & Jacky Mathonnat, 2013. "Two-Period Comparison of Healthcare Demand with Income Growth and Population Aging in Rural China: Implications for Adjustment of the Healthcare Supply and Development," Working Papers halshs-00846088, HAL.
    12. H. Naci Mocan & Erdal Tekin, 2003. "Guns, Drugs and Juvenile Crime: Evidence from a Panel of Siblings and Twins," NBER Working Papers 9824, National Bureau of Economic Research, Inc.
    13. Óscar D. Lourenço & Pedro L. Ferreira, 2005. "Utilization of public health centres in Portugal: effect of time costs and other determinants. Finite mixture models applied to truncated samples," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 939-953, September.
    14. Máximo Rossi & Patricia Triunfo, 2004. "Gastar en Cuidados Médicos: ¿Es un Lujo para los Montevideanos?," Documentos de Trabajo (working papers) 0604, Department of Economics - dECON.
    15. Chunhuei Chi & Jwo‐Leun Lee & Shu‐Ling Tsai & Wen‐Yi Chen, 2008. "Out‐of‐pocket payment for medical care under Taiwan's National Health Insurance system," Health Economics, John Wiley & Sons, Ltd., vol. 17(8), pages 961-975, August.
    16. Danyliv, Andriy & Groot, Wim & Gryga, Irena & Pavlova, Milena, 2014. "Willingness and ability to pay for physician services in six Central and Eastern European countries," Health Policy, Elsevier, vol. 117(1), pages 72-82.
    17. Yu, Yangyang & Sloan, Frank A., 2017. "Trends in elderly health by cohort: Evidence from China," China Economic Review, Elsevier, vol. 44(C), pages 282-295.
    18. Supon Limwattananon & Sven Neelsen & Owen O'Donnell & Phusit Prakongsai & Viroj Tangcharoensathien & Eddy van Doorslaer & Vuthiphan Vongmongkol, 2013. "Universal Coverage on a Budget: Impacts on Health Care Utilization and Out-Of-Pocket Expenditures in Thailand," CESifo Working Paper Series 4262, CESifo.
    19. O'Donnell, Owen & van Doorslaer, Eddy & Rannan-Eliya, Ravi P. & Somanathan, Aparnaa & Adhikari, Shiva Raj & Akkazieva, Baktygul & Harbianto, Deni & Garg, Charu C. & Hanvoravongchai, Piya & Herrin, Ale, 2008. "Who pays for health care in Asia?," Journal of Health Economics, Elsevier, vol. 27(2), pages 460-475, March.
    20. Anning Hu, 2014. "The Health Benefits of College Education in Urban China: Selection Bias and Heterogeneity," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(3), pages 1101-1121, February.
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    • I1 - Health, Education, and Welfare - - Health
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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