New impacts of Grossman's health investment model and the Russian demand for medical care.
Aim: By analyzing the Russian demand for medical care, we aim to highlight the practical relevance of Grossman's health investment model, one of the most important developments in health economic theory. Subjects and methods: We refer to the often-criticized inconsistencies between the health invest...
| Published in: | Journal of Public Health: From Theory to Practice (2198-1833) Vol. 24; no. 1; pp. 41 - 57 |
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| Main Authors: | , , |
| Format: | Article |
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Springer Nature
Feb2016
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=113466262&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 113466262 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 21981833 NENI jtl: Journal of Public Health: From Theory to Practice (2198-1833) issn: 21981833 maglogo: N pubinfo: dt: Feb2016 vid: 24 iid: 1 pid: 237 pub: Springer Nature artinfo: ui: 113466262 10.1007/s10389-015-0692-5 ppf: 41 ppct: 16 formats: tig: atl: New impacts of Grossman's health investment model and the Russian demand for medical care. aug: au: Burggraf, Christine Glauben, Thomas Grecksch, Wilfried affil: Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Theodor-Lieser-Street 2 06120 Halle (Saale) Germany Faculty of Natural Sciences II, Institute of Mathematics, Martin-Luther University Halle-Wittenberg, Theodor-Lieser-Street 5 06099 Halle (Saale) Germany keyword: D91 Decreasing returns to scale Demand for medical care Grossman model Health investment I12 Russia D91 Decreasing returns to scale Demand for medical care Grossman model Health investment I12 Russia ab: Aim: By analyzing the Russian demand for medical care, we aim to highlight the practical relevance of Grossman's health investment model, one of the most important developments in health economic theory. Subjects and methods: We refer to the often-criticized inconsistencies between the health investment model's theoretical implications and its empirical results. While the theoretical model implies, inter alia, that the demand for medical care increases with improving health, empirical tests show conflicting results. In order to solve this inconsistency, we specify the model's inherent health investment production function to be of decreasing rather than constant returns to scale. Afterwards, we employ our derived structural demand function for medical care in an empirical panel analysis using data from the Russia Longitudinal Monitoring Survey for 1996-2008. Results: In contrast to other studies, we show that even Grossman's standard model setting generates a structural demand function for medical care that implies sick people use more medical care, provided that the functional form of the health investment production function is properly specified. Further, our empirical analysis affirms our theoretically derived implications and provides important new insights into the Russian demand for medical care. Conclusions: Grossman's health investment model is of practical relevance to health economists. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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