The Demand for Medical Care in Urban China

41 Pages Posted: 18 May 2000 Last revised: 21 Dec 2022

See all articles by Naci H. Mocan

Naci H. Mocan

Louisiana State University, Baton Rouge - Department of Economics; National Bureau of Economic Research (NBER)

Erdal Tekin

Georgia State University - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Jeffrey S. Zax

University of Colorado at Boulder - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: April 2000

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.

Suggested Citation

Mocan, Naci H. and Tekin, Erdal and Zax, Jeffrey S., The Demand for Medical Care in Urban China (April 2000). NBER Working Paper No. w7673, Available at SSRN: https://ssrn.com/abstract=228082

Naci H. Mocan (Contact Author)

Louisiana State University, Baton Rouge - Department of Economics ( email )

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Erdal Tekin

Georgia State University - Department of Economics ( email )

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Jeffrey S. Zax

University of Colorado at Boulder - Department of Economics ( email )

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