The Health Care System Reform in China: Effects on Out-of-Pocket Expenses and Saving

33 Pages Posted: 25 Oct 2013

See all articles by Vincenzo Atella

Vincenzo Atella

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS); Department of Economics and Finance; University of Rome Tor Vergata - Faculty of Economics

Agar Brugiavini

Ca Foscari University of Venice - Dipartimento di Economia

Noemi Pace

Ca Foscari University of Venice - Department of Economics

Date Written: October 22, 2013

Abstract

This paper aims at evaluating the impact of 1998 Chinese health care reform on out-of-pocket expenditure and on saving. Existing evidence on the results achieved by this reform in terms of reduction of out-of-pocket medical expenditures is still mixed and contradictory, and very little is known about the impact of these measures on the consumption and saving behavior of the Chinese population. To shed more light on this issue we use data collected by the Chinese Household Income Project (CHIP), through a series of questionnaire-based interviews conducted in urban areas in 1995 and 2002. Contrary to previous evidence, our findings suggest that, once properly accounting for unobserved heterogeneity (health status), out-of-pocket medical expenses and saving rate are affected by the reform in a differentiated way. In particular, we find that out-of-pocket expenses increase more for individuals with poor health status and the saving rate increases only for individual with good health status.

Keywords: China, Health Insurance, Health care system reform, Household Saving, Out-of-pocket expenditures

JEL Classification: D14, I13, P36

Suggested Citation

Atella, Vincenzo and Brugiavini, Agar and Pace, Noemi, The Health Care System Reform in China: Effects on Out-of-Pocket Expenses and Saving (October 22, 2013). CEIS Working Paper No. 296, Available at SSRN: https://ssrn.com/abstract=2343726 or http://dx.doi.org/10.2139/ssrn.2343726

Vincenzo Atella (Contact Author)

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS) ( email )

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Department of Economics and Finance ( email )

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University of Rome Tor Vergata - Faculty of Economics ( email )

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HOME PAGE: http://www.economia.uniroma2.it/sefemeq/professori/atella/

Agar Brugiavini

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

Noemi Pace

Ca Foscari University of Venice - Department of Economics ( email )

Cannaregio 873
Venice, 30121
Italy

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