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Demand for traditional medicine in Taiwan: a mixed Gaussian-Poisson model approach

  • Steven T. Yen

    (Department of Applied Economics and Statistics, University of Nevada, Reno, NV, USA)

  • Chao-Hsiun Tang

    (School of Health Care Administration, Taipei Medical University, Taiwan, Republic of China)

  • Shew-Jiuan B. Su

    (Department of Geography, National Kaohsiung Normal University, Taiwan, Republic of China)

Registered author(s):

    Hurdle count models are used to examine the participation and consumption decisions in Chinese medicine use. Motivated by a household production model, a second censoring mechanism is introduced into existing single-hurdle models, and the resulting specification accommodates conscientious abstainers, as well as economic non-consumers, and admits excessive zeros in the sample. In contrast to previous studies that found few predictors, empirical results based on a Taiwanese national sample suggest that Western medicine is a gross substitute to Chinese medicine, and both time price and money price play more important roles than income. Insurance, lifestyle and demographics also determine the use of Chinese medicine. Copyright © 2001 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/hec.582
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    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 10 (2001)
    Issue (Month): 3 ()
    Pages: 221-232

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    Handle: RePEc:wly:hlthec:v:10:y:2001:i:3:p:221-232
    Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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    7. Jones, Andrew M., 2000. "Health econometrics," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 6, pages 265-344 Elsevier.
    8. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
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