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The Medical Cost Attributable to Obesity and Overweight in China: Estimation Based on Longitudinal Surveys

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  • Xuezheng Qin
  • Jay Pan

Abstract

With its rapid economic growth and fast changing lifestyle, China witnessed expansionary prevalence of obesity and overweight during the recent decades. This paper provides the first nationally representative estimate of the medical cost attributable to obesity and overweight in China. We improve upon the traditional estimation methodology (two‐part model) by jointly adopting the instrumental variable approach and the panel data methods in order to correct for the potential endogeneity of body size and the individual heterogeneity in medical expenditure. Using longitudinal data from 2000–2009 China Health and Nutrition Surveys, we find that body size has a significant impact on the individual expected medical expenditure and the per capita medical cost attributable to obesity and overweight in a single medical event is estimated to be 6.18 Yuan, or 5.29% of the total personal medical expenditure. This translates to 24.35 billion Yuan annual cost on the national scale, accounting for 2.46% of China's national health care expenditure. The subsample analyses also show that such cost is higher for the urban, women, and better educated people and increases over time. Our results contribute to the literature on the economic impact of obesity in developing countries and bear policy implications on controlling the rising health care costs in China. Copyright © 2015 John Wiley & Sons, Ltd.

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  • Xuezheng Qin & Jay Pan, 2016. "The Medical Cost Attributable to Obesity and Overweight in China: Estimation Based on Longitudinal Surveys," Health Economics, John Wiley & Sons, Ltd., vol. 25(10), pages 1291-1311, October.
  • Handle: RePEc:wly:hlthec:v:25:y:2016:i:10:p:1291-1311
    DOI: 10.1002/hec.3217
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    4. Deschenes, Olivier & Wang, Huixia & Wang, Si & Zhang, Peng, 2020. "The effect of air pollution on body weight and obesity: Evidence from China," Journal of Development Economics, Elsevier, vol. 145(C).
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    7. Zeng, Qiyan & Yu, Xiaohua & Bao, Te, 2020. "Memory utility, food consumption and obesity," China Economic Review, Elsevier, vol. 62(C).
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    10. Yangyang Sun & Daxin Dong & Yulian Ding, 2021. "The Impact of Dietary Knowledge on Health: Evidence from the China Health and Nutrition Survey," IJERPH, MDPI, vol. 18(7), pages 1-17, April.
    11. Nie, P. & Ding, L. & Jones, A.M., 2020. "Inequality of opportunity in bodyweight among middle-aged and older Chinese: a distributional approach," Health, Econometrics and Data Group (HEDG) Working Papers 20/14, HEDG, c/o Department of Economics, University of York.
    12. Lu, Na & Villa, Kira M., 2018. "The effect of farming on rural household’s health: A natural experiment in China," 2018 Annual Meeting, August 5-7, Washington, D.C. 274441, Agricultural and Applied Economics Association.
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