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An Econometric Model of Healthcare Demand With Nonlinear Pricing

Johannes Kunz and Rainer Winkelmann

Health Economics, 2017, vol. 26, issue 6, 691-702

Abstract: From 2004 to 2012, the German social health insurance levied a co‐payment for the first doctor visit in a calendar quarter. We develop a new model for estimating the effect of such a co‐payment on the individual number of visits per quarter. The model combines a one‐time increase in the otherwise constant hazard rate determining the timing of doctor visits with a difference‐in‐differences strategy to identify the reform effect. An extended version of the model accounts for a mismatch between reporting period and calendar quarter. Using data from the German Socio‐Economic Panel, we do not find an effect of the co‐payment on demand for doctor visits. Copyright © 2016 John Wiley & Sons, Ltd.

Date: 2017
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https://doi.org/10.1002/hec.3343

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