Health care system in rural China: A quantitative approach based on heterogeneous individuals

Jin Feng () and Zheng Song ()
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Jin Feng: School of Economics, Fudan University, Shanghai 200433, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2009, vol. 4, issue 2, 153-172

Abstract: This paper is aimed to provide some responses to the following three hotly debated issues regarding China¡¯s new rural cooperative medical system (NCMS), which was launched at the beginning of 2003. Firstly, how many people would join the system voluntarily? Secondly, can the system be self-balanced? And thirdly, would the lump-sum tax benefit the rich more than the poor? We build a decision model with heterogeneous agents and we compute the implications of NCMS and find under certain conditions, the balanced-system can be sustained and the rate of participation could be higher than 90%. Moreover, it is the unhealthy poor that benefit more from NCMS.

Keywords: rural medical system; rate of participation; welfare implications (search for similar items in EconPapers)
JEL-codes: C15 I18 I38 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:4:y:2009:i:2:p:153-172

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