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Unobserved heterogeneity and censoring in the demand for health care

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  • Ángel López Nicolás

Abstract

This paper analyses the demand for private health care by Spanish households using a micro budget survey. The methodology used takes care of the three part decision process involved in this type of behaviour, namely the decision to use private health care, how often to do so and how much to spend each time and also the effects of unobserved heterogeneity. Since the theoretical framework corresponds to the Grossman model of health investment, the results also provide a test of the theory when these issues are considered. Finally, the obtained evidence also suggest that the current system of tax deductions for private health care expenditures is regressive.

Suggested Citation

  • Ángel López Nicolás, 1997. "Unobserved heterogeneity and censoring in the demand for health care," Working Papers, Research Center on Health and Economics 240, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfses:240
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    References listed on IDEAS

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    1. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318, Elsevier.
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    3. Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
    4. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    5. Garcia, Jaume & Labeaga, Jose M, 1996. "Alternative Approaches to Modelling Zero Expenditure: An Application to Spanish Demand for Tobacco," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 489-506, August.
    6. Manuel Arellano & Olympia Bover, 1990. "La econometría de datos de panel," Investigaciones Economicas, Fundación SEPI, vol. 14(1), pages 3-45, January.
    7. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    8. Adam Wagstaff, 1993. "The demand for health: An empirical reformulation of the Grossman model," Health Economics, John Wiley & Sons, Ltd., vol. 2(2), pages 189-198, July.
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    Cited by:

    1. Esther Martínez, 1998. "Las deducciones en el IRPF por gasto sanitario privado: situación actual y posibilidades de reforma," Working Papers, Research Center on Health and Economics 307, Department of Economics and Business, Universitat Pompeu Fabra.

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    More about this item

    Keywords

    Health; microeconometrics;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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