Skip to main content

Estimating demand for medical care: health as a critical factor for adults and children

  • Chapter
Econometrics of Health Care

Part of the book series: Advanced Studies in Theoretical and Applied Econometrics ((ASTA,volume 20))

Abstract

In an era when resources are increasingly directed toward medical care, understanding the factors that influence demand takes on greater importance. Most work in this area (see, for example, Newhouse and Phelps, 1974; Hyman, 1971; Rosett and Huang, 1973; Newhouse, 1981) is directed to understanding the role of personal income and health insurance on demand, with emphasis on the dimensions of insurance. The recent Health Insurance Study conducted by the Rand Corporation focused on measuring responsiveness to various coinsurance rates — the partial payment by the consumer. Other recent work has addressed the value of time, length of wait, and demand for medical care. Equity issues are implicitly or explicitly raised by many of these studies. For example, the Health Insurance Study suggests that persons with low incomes decrease their medical care usage more than higher-income individuals when coinsurance is imposed.

The World Bank

The research reported in this paper was supported in part through funds granted to the Institute for Research on Poverty by the Department of Health and Human Services pursuant to the provisions of Economic Opportunity Act of 1964.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Colle, A. and Grossman, M. (1978), ‘Determinants of Pediatric Care Utilization’, Journal of Human Resources 13 (Supplement), 115–58.

    Article  Google Scholar 

  • Davis, K. and Reynolds, R. (1976), The Impact of Medicare and Medicaid on Access to Medical Care’, In R. Rosett (ed.), The Role of Health Insurance in the Health Services Sector, New York, National Bureau of Economic Research.

    Google Scholar 

  • Edwards, L. and Grossman, M. (1980), ‘Children’s Health and the Family’, In R. Scheffler (ed.), Annual Series of Research in Health Economics, Vol. 2, Greenwich, Conn., JAI Press.

    Google Scholar 

  • Goldman, F. and Grossman, M. (1978), ‘The Demand for Pediatric Care: A Hedonic Approach’, Journal of Political Economy 86, 259–80.

    Article  Google Scholar 

  • Grossman, M. (1972), ‘On the Concept of Health Capital and the Demand for Health’, Journal of Political Economy 80/2, 223–55.

    Article  Google Scholar 

  • Hooymans, E. M. and Van de Ven, W. P. M. M. (1982), ‘Implementing a Health Status Index in a Structural Health Care Model’, In van der Gaag, J., Neenan, B. and Tsukurhara, T. (eds.), Economics of Health Care, New York, Praeger.

    Google Scholar 

  • Hyman, J. (1971), ‘Empirical Research on the Demand for Health Care’, Inquiry 8, 61–71.

    Google Scholar 

  • Jöreskog, K. G. and Sörbom, D. (1978), Estimation of Linear Structural Equation Systems by Maximum Likelihood Methods, Chicago, International Educator Services.

    Google Scholar 

  • Lee, L. F. (1979), ‘Health and Wages: A Simultaneous Equation Model with Multiple Discrete Indicators’, Working Paper No. 79–127, Department of Economics, University of Minnesota.

    Google Scholar 

  • Manning, W. G., Newhouse, J. P. and Ware, J. E. Jr. (1981), ‘The Status of Health in Demand Estimation: Beyond Excellent, Good, Fair and Poor’, NBER Conference Paper 86,January.

    Google Scholar 

  • Newhouse, J. P. (1981), ‘The Demand for Medical Care Services: A Retrospect and Prospect’, In J. van der Gaag and M. Perlman (eds.), Health, Economics, and Health Economics,Amsterdam, North Holland.

    Google Scholar 

  • Newhouse, J. P. and Phelps, C. E. (1974), ‘Price and Income Elasticities for Medical Care Services’, In Mark Perlman (ed.), The Economics of Health and Medical Care, New York, John Wiley and Sons.

    Google Scholar 

  • Robinson, P. M. and Ferrara, M. C. (1977), ‘The Estimation of a Model for an Unobservable Variable with Endogenous Causes’, In Aigner, D. J. and Goldberger, A. S. (eds.), Latent Variables in Socioeconomic Models, Amsterdam, North-Holland.

    Google Scholar 

  • Rosett, R. and Huang, L. P. (1973), ‘The Effect of Health Insurance on the Demand for Health Care’’, Journal of Political Economy 81, 281–305.

    Article  Google Scholar 

  • Shakotko, R. A. (1980), ‘Dynamic Aspects of Children’s Health, Intellectual Development, and Family Economic Status’, New York, NBER Working Paper No. 451.

    Google Scholar 

  • U.S. Department of Health and Human Services. (1981), Current Estimates from the National Health Interview Survey: United States, 1980, DHHS Publication No. (PHS) 82–1567,December.

    Google Scholar 

  • Van de Ven, W. P. M. M. and van der Gaag, J. (1982), ‘Health as an Unobservable: A MIMIC-Model for Health Care Demand’, Journal of Health Economics 1, No. 2, August.

    Google Scholar 

    Google Scholar 

  • Wolfe, B. L. (1980), ‘Children’s Utilization of Medical Care’, Medical Care 18 (December):pp. 1196–1207 (Institute for Research on Poverty Reprint No. 419).

    Article  Google Scholar 

  • Wolfe, B. and van der Gaag, J. (1981), ‘A New Health Status Index for Children’, In van der Gaag, J. and Perlman, M. (eds.), Health, Economics, and Health Economics, Amsterdam, North-Holland.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1991 Kluwer Academic Publishers

About this chapter

Cite this chapter

van der Gaag, J., Wolfe, B.L. (1991). Estimating demand for medical care: health as a critical factor for adults and children. In: Duru, G., Paelinck, J.H.P. (eds) Econometrics of Health Care. Advanced Studies in Theoretical and Applied Econometrics, vol 20. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2051-4_3

Download citation

  • DOI: https://doi.org/10.1007/978-94-009-2051-4_3

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-7420-9

  • Online ISBN: 978-94-009-2051-4

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics