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The Effect of Time Price on the Demand for Medical-Care Services


  • Rosanna M. Coffey


This paper analyzes the effect of time price on medical-care demand and describes use of a reservation-wage question from a household survey to develop a measure of time price for obtaining medical care. A comprehensive three-equation model of the demand for female medical-care services examines choice of provider, entry demand, and the demand for physician visits. Results show that provider choice is based primarily on economic factors and that an expected high time price discourages women from choosing a public provider and from seeking gynecological, maternal-health, or family-planning services during the year, yet does not influence the number of visits made once care is used. The estimated model shows that medical-care demand equations should control for the type of provider chosen and the opportunity cost of time for alternative activities when testing for a negative time price effect of obtaining medical care.

Suggested Citation

  • Rosanna M. Coffey, 1983. "The Effect of Time Price on the Demand for Medical-Care Services," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 407-424.
  • Handle: RePEc:uwp:jhriss:v:18:y:1983:i:3:p:407-424

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    1. repec:eee:hepoli:v:121:y:2017:i:5:p:534-542 is not listed on IDEAS
    2. Mary Zimmerman Murphy, 1987. "The Importance of Sample Selection Bias in the Estimation of Medical Care Demand Equations," Eastern Economic Journal, Eastern Economic Association, vol. 13(1), pages 19-29, Jan-Mar.
    3. Wagner, Todd H. & Hu, Teh-wei & Duenas, Grace V. & Pasick, Rena J., 2000. "Willingness to pay for mammography: item development and testing among five ethnic groups," Health Policy, Elsevier, vol. 53(2), pages 105-121, September.
    4. Angulo, Ana María & Barberán, Ramón & Egea, Pilar & Mur, Jesús, 2011. "An analysis of health expenditure on a microdata population basis," Economic Modelling, Elsevier, vol. 28(1), pages 169-180.
    5. Akbar Marvasti, 2006. "A Contingent Valuation of Customer Delay in Medical Services," Eastern Economic Journal, Eastern Economic Association, vol. 32(1), pages 31-45, Winter.
    6. INUI Tomohiko & ITO Yukiko & KAWAKAMI Atsushi & MA Xin Xin & NAGASHIMA Masaru & ZHAO Meng, 2017. "Empirical Study on the Utilization and Effects of Health Checkups in Japan," Discussion papers 17082, Research Institute of Economy, Trade and Industry (RIETI).
    7. Kinge, Jonas Minet & Morris, Stephan, 2015. "The impact of childhood obesity on health and health service use: an instrumental variable approach," HERO On line Working Paper Series 2015:2, Oslo University, Health Economics Research Programme.
    8. Lairson, David R. & Chan, Wenyaw & Newmark, Georgina R., 2005. "Determinants of the demand for breast cancer screening among women veterans in the United States," Social Science & Medicine, Elsevier, vol. 61(7), pages 1608-1617, October.
    9. Shou-Lin Yang & Chiung-Ying Lee, 2015. "Analysis of the medical demands of elderly dementia patients considering the caregiver cost of medical accompaniment: an application of the travel cost method and altruistic utility function," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 423-439, January.
    10. Wagner, Todd H. & Hu, Teh-wei & Hibbard, Judith H., 2001. "The demand for consumer health information," Journal of Health Economics, Elsevier, vol. 20(6), pages 1059-1075, November.
    11. Fabbri, Daniele & Monfardini, Chiara, 2009. "Rationing the public provision of healthcare in the presence of private supplements: Evidence from the Italian NHS," Journal of Health Economics, Elsevier, vol. 28(2), pages 290-304, March.
    12. Tak, Hyo Jung & Hougham, Gavin W. & Ruhnke, Atsuko & Ruhnke, Gregory W., 2014. "The effect of in-office waiting time on physician visit frequency among working-age adults," Social Science & Medicine, Elsevier, vol. 118(C), pages 43-51.
    13. Jacob Nielsen Arendt, 2012. "The Demand for Health Care by the Poor under Universal Health Care Coverage," Journal of Human Capital, University of Chicago Press, vol. 6(4), pages 316-335.

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