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Estimation of Health Care Aggregate Demand Function in Urban and Rural Households of Iran
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Saeed Sheikhgholami *   , Sayyed_Morteza Hossein_Shokouh , Farbod Ebadifard Azar , Aziz Rezapour |
| Iran University of Medical Sciences |
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Abstract: (2736 Views) |
Background and Aim: Nowadays, demand analysis plays an important role in economic studies to manage and planning the consumption of healthcare services. So, this study aim was to estimate health services aggregate demand function in urban and rural households of Iran.
Methods: This was a quantitative study which done with descriptive-analytical retrospective approach. Needed data was collected from available urban and rural household’s budget and expenses information at time-series (1989-2010). Data was registered to information sheets, analyzed by Eviews software, and in form of Cobb-Douglas function, and OLS method with a significance level of 5%.
Results: The correlation between expenses for health services with income and services price index were positive and significant in both groups of households (p< 0.05). High-income households were spending in the health sector more than households with low-income. The price elasticity of health service demand in Iranian household was calculated less than 1 (p< 0.05). The income elasticity of health service demand in Iranian household was calculated between 0 and 1(p< 0.05).
Conclusion: Demand for health services was non-elasticity to price and these services were categorized in essential goods. Therefore, health policy makers are needed do comprehensive study and more active price monitoring for adopting the policy of increasing service tariffs. Also, focus on non-pricing policies to manage healthcare service demand. |
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| Keywords: Aggregate demand, price elasticity of demand, income elasticity of demand, health services. |
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Full-Text [PDF 335 kb]
(702 Downloads)
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Type of Study: Research |
Subject:
Special
Received: 2021/06/19 | Accepted: 2021/08/16 | Published: 2021/08/16
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