Working Paper: NBER ID: w7673
Authors: 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.
Keywords: medical care demand; urban China; income elasticity; price elasticity
JEL Codes: I1; O52; R22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| household characteristics (R20) | demand for medical care (I11) |
| work conditions (J81) | demand for medical care (I11) |
| income (E25) | demand for medical care (I11) |
| price (D41) | demand for medical care (I11) |
| income elasticity (D12) | demand for medical care (I11) |
| price elasticity (D12) | demand for medical care (I11) |
| price elasticity (for poorer households) (D12) | demand for medical care (I11) |