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The Selection of an Appropriate Count Data Model for Modelling Health Insurance and Health Care Demand: Case of Indonesia

Budi Hidayat and Subhash Pokhrel
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Budi Hidayat: Faculty of Public Health, the University of Indonesia, Kampus FKM UI, Building F 1th Floor, Depok 16424, Indonesia
Subhash Pokhrel: Health Economics Research Group, Brunel University, Uxbridge, Middlesex, UB8 3PH, UK

IJERPH, 2009, vol. 7, issue 1, 1-19

Abstract: We apply several estimators to Indonesian household data to estimate the relationship between health insurance and the number of outpatient visits to public and private providers. Once endogeneity of insurance is taken into account, there is a 63 percent increase in the average number of public visits by the beneficiaries of mandatory insurance for civil servants. Individuals' decisions to make first contact with private providers is affected by private insurance membership. However, insurance status does not make any difference for the number of future outpatient visits.

Keywords: health insurance; demand for health care; endogeneity; count data models (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2009
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