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

  • Jacques van der Gaag
  • Barbara L. Wolfe
Part of the Advanced Studies in Theoretical and Applied Econometrics book series (ASTA, volume 20)


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.


Health Care Utilization Health Measure Proxy Measure Socioeconomic Variable Health Variable 
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Copyright information

© Kluwer Academic Publishers 1991

Authors and Affiliations

  • Jacques van der Gaag
  • Barbara L. Wolfe
    • 1
  1. 1.University of Wisconsin-MadisonUSA

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