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Price elasticities of demand for curative health care with control for sample selectivity on endogenous illness: an analysis for Sri Lanka

Author

Listed:
  • John S. Akin
  • David K. Guilkey

    (Department of Economics, University of North Carolina at Chapel Hill, USA)

  • Paul L. Hutchinson
  • Michael T. Mcintosh

    (Department of Economics, University of North Carolina at Chapel Hill, USA)

Abstract

Estimation of demand for health care with samples of only the ill may bias estimates. Additionally, the lack of exogenous information, especially distance, about the alternative care providers causes omitted variable problems. This paper alleviates both problems through geographic mapping of facility information to individuals, combined with joint estimation of illness (health production) and health care demand. The joint estimation full sample demand results are compared to those from one equation estimation for only the ill sample. The results indicate that the selectivity problem is significant, but that for this sample the magnitude of the bias on the price coefficient is small. © 1998 John Wiley & Sons, Ltd.

Suggested Citation

  • John S. Akin & David K. Guilkey & Paul L. Hutchinson & Michael T. Mcintosh, 1998. "Price elasticities of demand for curative health care with control for sample selectivity on endogenous illness: an analysis for Sri Lanka," Health Economics, John Wiley & Sons, Ltd., vol. 7(6), pages 509-531.
  • Handle: RePEc:wly:hlthec:v:7:y:1998:i:6:p:509-531
    DOI: 10.1002/(SICI)1099-1050(199809)7:6<509::AID-HEC366>3.0.CO;2-S
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    Cited by:

    1. Abay Asfaw & Francesca Lamanna & Stephan Klasen, 2010. "Gender gap in parents' financing strategy for hospitalization of their children: evidence from India," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 265-279.
    2. Magnus Lindelow, 2004. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Development and Comp Systems 0409057, EconWPA.
    3. Kasirye, Ibrahim & Ssewanyana, Sarah & Nabyonga, Juliet & Lawson, David, 2004. "Demand for health care services in Uganda: Implications for poverty reduction," MPRA Paper 8558, University Library of Munich, Germany.
    4. Deininger, Klaus & Mpuga, Paul, 2004. "Economic and Welfare Effects of the Abolition of Health User Fees : Evidence from Uganda," Policy Research Working Paper Series 3276, The World Bank.
    5. Abay Asfaw & Stephan Klasen & Francesca Lamanna, 2008. "Intrahousehold Health Care Financing Strategy and the Gender Gap: Empirical Evidence from India," Ibero America Institute for Econ. Research (IAI) Discussion Papers 177, Ibero-America Institute for Economic Research.
    6. Lindelow, Magnus, 2002. "Health care demand in rural Mozambique," FCND discussion papers 126, International Food Policy Research Institute (IFPRI).
    7. Anta TA DIAL & Moussa DIENG & Martine AUDIBERT & Jean-Yves LE HESRAN, 2014. "Déterminants de la demande de soins en milieu péri-urbain dans un contexte de subvention à Pikine, Sénégal," Working Papers 201415, CERDI.
    8. Begoña Álvarez & Marcos Vera-Hernández, 2007. "Una reflexión sobre las medidas de desigualdad intermedias," Working Papers 0704, Universidade de Vigo, Departamento de Economía Aplicada.
    9. Magnus Lindelow, 2003. "Understanding spatial variation in the utilization of health services: does quality matter?," Economics Series Working Papers WPS/2004-12, University of Oxford, Department of Economics.
    10. Magnus Lindelow, 2003. "The Utilization of Curative Health Care in Mozambique: Does Income Matter?," Economics Series Working Papers WPS/2004-11, University of Oxford, Department of Economics.
    11. Ana Revenga & Mead Over & Emiko Masaki & Wiwat Peerapatanapokin & Julian Gold & Viroj Tangcharoensathien & Sombat Thanprasertsuk, 2006. "The Economics of Effective AIDS Treatment : Evaluating Policy Options for Thailand," World Bank Publications, The World Bank, number 7196.
    12. Juan Miguel Gallego & Manuel Ramírez Gómez & Carlos Sepúlveda, 2005. "The Determinants of The Health Status in a Developing Country: results from the Colombian Case," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 63, pages 111-135, Julio-Dic.
    13. Pokhrel, Subhash, 2007. "Determinants of parental reports of children's illnesses: Empirical evidence from Nepal," Social Science & Medicine, Elsevier, vol. 65(6), pages 1106-1117, September.
    14. Gordon G. Liu & Xiaodong Wu & Chaoyang Peng & Alex Z. Fu, 2003. "Urbanization And Health Care In Rural China," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 11-24, January.
    15. Johar, Meliyanni, 2009. "The impact of the Indonesian health card program: A matching estimator approach," Journal of Health Economics, Elsevier, vol. 28(1), pages 35-53, January.
    16. Magnus Lindelow, 2004. "Understanding spatial variation in the utilization of health," Development and Comp Systems 0409058, EconWPA.
    17. Antonio J. Trujillo, 2003. "Medical care use and selection in a social health insurance with an equalization fund: evidence from Colombia," Health Economics, John Wiley & Sons, Ltd., vol. 12(3), pages 231-246.
    18. Pokhrel, Subhash & De Allegri, Manuela & Gbangou, Adijma & Sauerborn, Rainer, 2010. "Illness reporting and demand for medical care in rural Burkina Faso," Social Science & Medicine, Elsevier, vol. 70(11), pages 1693-1700, June.
    19. Lawson, David, 2004. "Determinants of Health Seeking Behaviour in Uganda - Is It Just Income and User Fees That Are Important?," Development Economics and Public Policy Working Papers 30553, University of Manchester, Institute for Development Policy and Management (IDPM).
    20. Heller, Lauren R., 2013. "Do slums matter? Location and early childhood preventive care choices among urban residents of Bangladesh," Social Science & Medicine, Elsevier, vol. 94(C), pages 43-55.

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