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Measuring income equity in the demand for healthcare with finite mixture models

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  • Besstremyannaya, Galina

    () (CEFIR at New Economic School; CEMI RAS, Moscow, Russia)

Abstract

The paper exploits panel data finite mixture (latent class) models to measure consumer equity in healthcare access and utilization. The finite mixture approach accounts for unobservable consumer heterogeneity, while generalized linear models address a retransformation problem of logged dependent variable. Using the data of the Japan Household Panel Survey (2009–2014), we discover that consumers separate into latent classes in the binary choice models for healthcare use and generalized linear models for outpatient/inpatient healthcare expenditure. The results reveal that healthcare access in Japan is pro-poor for the most sick consumers, while utilization of outpatient care is equitable with respect to disposable income.

Suggested Citation

  • Besstremyannaya, Galina, 2017. "Measuring income equity in the demand for healthcare with finite mixture models," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 46, pages 5-29.
  • Handle: RePEc:ris:apltrx:0315
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    healthcare demand; equity; generalized linear models; latent class; finite mixture;

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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