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Demand for Medical and Health Services in Rural India

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  • Dr. Umakant Dash

Abstract

Given a limited availability of healthcare resources, questions are now being raised about how to sustain an effective health care system and meet the needs of the general population in the current environment. The present study is a humble effort to investigate, using a reformulated Grossman's model, the determinants of the demand of medical care in the rural India. It uses a data set that consists of detailed characteristic of 200 households of residents in and around Pilani, a small town, in the state of Rajasthan, a northern state of India. Our evidences suggest that household characteristics, social status and work conditions influence the demand for medical care. Medical care demand is price elastic, and is larger in absolute value for poorer households. Income elasticity is around 1.09, indicating medical care is a luxury in this part of rural Rajasthan because of their high opportunity cost of health.

Suggested Citation

  • Dr. Umakant Dash, 2005. "Demand for Medical and Health Services in Rural India," The IUP Journal of Applied Economics, IUP Publications, vol. 0(5), pages 63-86, September.
    • Handle: RePEc:icf:icfjae:v:04:y:2005:i:5:p:63-86
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