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The Demand for Medical Care in Urban China

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  • H. Naci Mocan
  • Erdal Tekin
  • Jeffrey S. Zax

Abstract

This is the first paper to investigate the determinants of the demand for medical care in the People's Republic of China. It uses a data set that consists of detailed characteristics of 6407 urban households, a continuous measure of health care spending, and price. A two-part model and a discrete factor model are used in the estimation. Household characteristics and work conditions impact the demand for medical care. Income elasticity is around 0.3, indicating medical care is a necessity. Medical care demand is price inelastic, and price elasticity is larger in absolute value for poorer households.

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  • H. Naci Mocan & Erdal Tekin & Jeffrey S. Zax, 2000. "The Demand for Medical Care in Urban China," NBER Working Papers 7673, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:7673
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    Cited by:

    1. Christelle Grobler & Ian c. Stuart, 2007. "Health Care Provider Choice," South African Journal of Economics, Economic Society of South Africa, vol. 75(2), pages 327-350, June.
    2. Óscar D. Lourenço & Pedro L. Ferreira, 2005. "Utilization of public health centres in Portugal: effect of time costs and other determinants. Finite mixture models applied to truncated samples," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 939-953.
    3. Mocan, H. Naci & Tekin, Erdal & Zax, Jeffrey S., 2004. "The Demand for Medical Care in Urban China," World Development, Elsevier, vol. 32(2), pages 289-304, February.
    4. Máximo Rossi & Patricia Triunfo, 2004. "Gastar en Cuidados Médicos: ¿Es un Lujo para los Montevideanos?," Documentos de Trabajo (working papers) 0604, Department of Economics - dECON.
    5. Jacky MATHONNAT & Yong HE & Martine AUDIBERT, 2013. "Two-Period Comparison of Healthcare Demand with Income Growth and Population Aging in Rural China: Implications for Adjustment of the Healthcare Supply and Development," Working Papers 201315, CERDI.
    6. Chunhuei Chi & Jwo-Leun Lee & Shu-Ling Tsai & Wen-Yi Chen, 2008. "Out-of-pocket payment for medical care under Taiwan's National Health Insurance system," Health Economics, John Wiley & Sons, Ltd., vol. 17(8), pages 961-975.
    7. Jianmei Zhao & Hai Zhong, 2015. "Medical expenditure in urban China: a quantile regression analysis," International Journal of Health Economics and Management, Springer, vol. 15(4), pages 387-406, December.
    8. Danyliv, Andriy & Groot, Wim & Gryga, Irena & Pavlova, Milena, 2014. "Willingness and ability to pay for physician services in six Central and Eastern European countries," Health Policy, Elsevier, vol. 117(1), pages 72-82.
    9. Nadeem A. Burney & Mohammad Alenezi & Nadia Al-Musallam & Ahmed Al-Khayat, 2016. "The demand for medical care services: evidence from Kuwait based on households’ out-of-pocket expenses," Applied Economics, Taylor & Francis Journals, vol. 48(28), pages 2636-2650, June.
    10. Okeke, Edward N. & Adepiti, Clement A. & Ajenifuja, Kayode O., 2013. "What is the price of prevention? New evidence from a field experiment," Journal of Health Economics, Elsevier, vol. 32(1), pages 207-218.
    11. repec:eee:chieco:v:44:y:2017:i:c:p:282-295 is not listed on IDEAS
    12. Chau-kiu Cheung & Raymond Chan & Wing-chung Ho, 2014. "Feeling Close to Fellow Citizens in Hong Kong, Korea, Taiwan, and Thailand," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(1), pages 25-48, October.
    13. Supon Limwattananon & Sven Neelsen & Owen O'Donnell & Phusit Prakongsai & Viroj Tangcharoensathien & Eddy van Doorslaer & Vuthiphan Vongmongkol, 2013. "Universal Coverage on a Budget: Impacts on Health Care Utilization and Out-Of-Pocket Expenditures in Thailand," CESifo Working Paper Series 4262, CESifo Group Munich.
    14. Jiale Zhang, 2007. "A DID analysis of the impact of health insurance reform in the city of Hangzhou," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1389-1402.
    15. O'Donnell, Owen & van Doorslaer, Eddy & Rannan-Eliya, Ravi P. & Somanathan, Aparnaa & Adhikari, Shiva Raj & Akkazieva, Baktygul & Harbianto, Deni & Garg, Charu C. & Hanvoravongchai, Piya & Herrin, Ale, 2008. "Who pays for health care in Asia?," Journal of Health Economics, Elsevier, vol. 27(2), pages 460-475, March.
    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. H. Naci Mocan & Erdal Tekin, 2003. "Guns, Drugs and Juvenile Crime: Evidence from a Panel of Siblings and Twins," NBER Working Papers 9824, National Bureau of Economic Research, Inc.
    18. Anning Hu, 2014. "The Health Benefits of College Education in Urban China: Selection Bias and Heterogeneity," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(3), pages 1101-1121, February.

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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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