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New Estimates of the Demand for Health: Results Based on a Categorical Health Measure and Swedish Micro Data

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  • Gerdtham, Ulf-G

    () (Dept. of Economics, Stockholm School of Economics)

  • Johannesson, Magnus

    () (Dept. of Economics, Stockholm School of Economics)

Abstract

In this paper we estimate a 'Grossman' model of demand for health based on Swedish micro data. The data set consists of a random sample of over 5,000 individuals taken from the Swedish adult population. Health capital is measured by a categorical measure of overall health status, and an ordered probit model is used to econometrically estimate the demand-for-health equation. The results are consistent with the theoretical predictions and show that the demand for health increases with income and education and decreases with age, overweight, urbanisation and being single.

Suggested Citation

  • Gerdtham, Ulf-G & Johannesson, Magnus, 1997. "New Estimates of the Demand for Health: Results Based on a Categorical Health Measure and Swedish Micro Data," SSE/EFI Working Paper Series in Economics and Finance 205, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0205
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    References listed on IDEAS

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    Cited by:

    1. Hullegie, P.G.J., 2012. "Essays on health and labor economics," Other publications TiSEM dcc68fc9-7af1-4ba9-8f90-6, Tilburg University, School of Economics and Management.
    2. Ianina Rossi & Fernanda Tellechea & Fiorella Tramontin & Patricia Triunfo, 2007. "El estado de salud de los uruguayos," Estudios de Economia, University of Chile, Department of Economics, vol. 34(1 Year 20), pages 73-96, June.
    3. Titus J. Galama & Patrick Hullegie & Erik Meijer & Sarah Outcault, 2012. "Is There Empirical Evidence For Decreasing Returns To Scale In A Health Capital Model?," Health Economics, John Wiley & Sons, Ltd., vol. 21(9), pages 1080-1100, September.
    4. Myung Ki & Yvonne Kelly & Amanda Sacker & James Nazroo, 2013. "Poor health, employment transitions and gender: evidence from the British Household Panel Survey," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 58(4), pages 537-546, August.
    5. Udo Schneider & Christian Pfarr & Brit Schneider & Volker Ulrich, 2012. "I feel good! Gender differences and reporting heterogeneity in self-assessed health," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(3), pages 251-265, June.
    6. Cinzia Di Novi, 2007. "An Economic Evaluation of Life-Style and Air-pollution-related Damages: Results from the BRFSS," JEPS Working Papers 07-001, JEPS.
    7. R Todd Jewell & Maximo Rossi & Patricia Triunfo, 2006. "El Estado de Salud de los Jóvenes Uruguayos," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 43(128), pages 235-250.
    8. Qiu, Tian, 2007. "The Adjusted Measure of Body Mass Index for the Chinese and its Impact on Health," MPRA Paper 25211, University Library of Munich, Germany, revised 2009.
    9. Jochen Hartwig & Jan-Egbert Sturm, 2017. "Testing the Grossman model of medical spending determinants with macroeconomic panel data," Chemnitz Economic Papers 001, Department of Economics, Chemnitz University of Technology, revised Feb 2017.
    10. Sara Markowitz & Erik Nesson & Joshua Robinson, 2010. "Are Pink Slips Better Than Flu Shots? The Effects of Employment on Influenza Rates," NBER Working Papers 15796, National Bureau of Economic Research, Inc.
    11. Mikael Lindahl, 2005. "Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    12. Kim, Jiyun & Ko, Sukyoung & Yang, Bongmin, 2005. "The effects of patient cost sharing on ambulatory utilization in South Korea," Health Policy, Elsevier, vol. 72(3), pages 293-300, June.
    13. Chung Jen Yang & Ying Che Tsai & Joseph J. Tien, 2017. "The Impacts of Persistent Behaviour and Cost-Sharing Policy on Demand for Outpatient Visits by the Elderly: Evidence from Taiwan’s National Health Insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 42(1), pages 31-52, January.
    14. Grossman, Michael, 2006. "Education and Nonmarket Outcomes," Handbook of the Economics of Education, Elsevier.
    15. Galama, Titus & Kapteyn, Arie, 2011. "Grossman’s missing health threshold," Journal of Health Economics, Elsevier, pages 1044-1056.
    16. Máximo Rossi & Patricia Triunfo, 2004. "El Estado de Salud del Adulto Mayor en Uruguay," Documentos de Trabajo (working papers) 1404, Department of Economics - dECON.
    17. Gustavo Adolfo García Cruz. & Luís Miguel Tovar Cuevas, 2006. "La Percepción del Estado de Salud: Una Mirada a las Regiones desde la Encuesta de Calidad de Vida 2003," DOCUMENTOS DE TRABAJO-CIDSE 003972, UNIVERSIDAD DEL VALLE - CIDSE.
    18. Qiu, Tian, 2007. "The Adjusted Measure of Body Mass Index and its Impact on Health," MPRA Paper 6270, University Library of Munich, Germany.
    19. Sisira Sarma & Wayne Simpson, 2006. "A microeconometric analysis of Canadian health care utilization," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 219-239.
    20. Paul McNamee, 2004. "A comparison of the grade of membership measure with alternative health indicators in explaining costs for older people," Health Economics, John Wiley & Sons, Ltd., vol. 13(4), pages 379-395.
    21. Goerlich, Francisco José & Pinilla, Rafael, 2005. "Esperanza de Vida y Potencial de Vida a lo largo del siglo XX en España
      [Live Expectancy and Potential throughout the twentieth century in Spain]
      ," MPRA Paper 15911, University Library of Munich, Germany, revised 2005.
    22. Pandey, Manoj K., 2009. "On ageing, health and poverty in rural India," MPRA Paper 15932, University Library of Munich, Germany.
    23. Zhao, Zhong, 2005. "Health Determinants in Urban China," IZA Discussion Papers 1835, Institute for the Study of Labor (IZA).
    24. Titus Galama, 2011. "A Contribution to Health Capital Theory," Working Papers 831, RAND Corporation.

    More about this item

    Keywords

    Demand for health; health production; human capital; health status;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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