Health Care Expenditure Over Life Cycle in the People's Republic of China

Asian Development Review 32:1, 2015

29 Pages Posted: 6 Apr 2016

See all articles by Jin Feng

Jin Feng

Fudan University - School of Economics

Pingyi Lou

Fudan University

Yangyang Yu

Shanghai University of Finance and Economics

Date Written: April 13, 2015

Abstract

We use individual level data from eight waves of the China Health and Nutrition Survey during 1991-2011 to investigate age profiles of health expenditure for rural and urban residents in the People’s Republic of China (PRC). Employing a two-part model, we find that health expenditure of rural residents is averagely 33% lower than that of urban residents and age-expenditure profile is much steeper in urban areas than in rural areas. However, there is no evidence that the health status of the rural elderly is better than that of the urban elderly. The findings imply that health spending of the rural elderly may increase more during the process of rural-urban integration. In addition, we find a significant difference in age-expenditure profiles across time. Compared with expenditure during 1991-2000, the estimated age-expenditure profile becomes steeper during 2004-2011 in both urban and rural areas.

Keywords: health expenditure, age-expenditure profile, rural–urban integration

JEL Classification: I10, J11

Suggested Citation

Feng, Jin and Lou, Pingyi and Yu, Yangyang, Health Care Expenditure Over Life Cycle in the People's Republic of China (April 13, 2015). Asian Development Review 32:1, 2015, Available at SSRN: https://ssrn.com/abstract=2759004

Jin Feng (Contact Author)

Fudan University - School of Economics ( email )

600 GuoQuan Road
Shanghai, 200433
China

Pingyi Lou

Fudan University ( email )

600 Guoquan Rd
Shanghai, 200433
China

Yangyang Yu

Shanghai University of Finance and Economics ( email )

777 Guoding Road
Shanghai, AK Shanghai 200433
China

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