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Partial mean and inequality effects on catastrophic health payments: methods with application to Malawi

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  • Mussa, Richard

Abstract

This paper develops distribution-sensitive partial mean effects of determinants of out-of-pocket (OOP) catastrophic health payments. It also proposes methods that can be used to measure how changes in the distribution of the correlates of catastrophic health payments affect the incidence of catastrophic health payments; an inequality effect. The proposed methods are then applied to Malawian data from the Third Integrated Household Survey. The empirical application shows that a failure to account for these inequalities in the correlates, at least normatively, leads to a mismeasurement of the magnitudes of their partial effects. The results also indicate that the signs of the combined effects of a ceteris paribus unit increase in the mean and inequality effects are mixed; for some variables the inequality effect dominates the mean effect while for other variables a reverse pattern is observed.

Suggested Citation

  • Mussa, Richard, 2015. "Partial mean and inequality effects on catastrophic health payments: methods with application to Malawi," MPRA Paper 65203, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:65203
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    File URL: https://mpra.ub.uni-muenchen.de/65203/1/MPRA_paper_65203.pdf
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    References listed on IDEAS

    as
    1. Rama Pal, 2012. "Measuring incidence of catastrophic out-of-pocket health expenditure: with application to India," International Journal of Health Economics and Management, Springer, vol. 12(1), pages 63-85, March.
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    3. Owen O'Donnell & Eddy van Doorslaer & Adam Wagstaff & Magnus Lindelow, 2008. "Analyzing Health Equity Using Household Survey Data : A Guide to Techniques and Their Implementation," World Bank Publications, The World Bank, number 6896, January.
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    5. Wagstaff, Adam & van Doorslaer, Eddy & Watanabe, Naoko, 2003. "On decomposing the causes of health sector inequalities with an application to malnutrition inequalities in Vietnam," Journal of Econometrics, Elsevier, vol. 112(1), pages 207-223, January.
    6. Adam Wagstaff & Eddy van Doorslaer, 2003. "Catastrophe and impoverishment in paying for health care: with applications to Vietnam 1993-1998," Health Economics, John Wiley & Sons, Ltd., vol. 12(11), pages 921-933.
    7. World Bank, 2013. "Malawi Public Expenditure Review," World Bank Other Operational Studies 20586, The World Bank.
    8. Menno Pradhan & Nicholas Prescott, 2002. "Social risk management options for medical care in Indonesia," Health Economics, John Wiley & Sons, Ltd., vol. 11(5), pages 431-446.
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    10. Michael Grossman, 1999. "The Human Capital Model of the Demand for Health," NBER Working Papers 7078, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Mean effect; inequality effect; Malawi;

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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