The Demand for Physicians' Services and the Price of Cigarettes

Gerard Russo ()
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Gerard Russo: Department of Economics, University of Hawaii at Manoa

No 199024, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: This paper presents Tobit estimates of the demand for physician visits. Using the 1980 National Health Interview Survey and price data from the Tobacco Institute, estimates of the effect of cigarette prices on physician utilization are obtained. Statistically significant coefficients imply a cross-price elasticity of demand of approximately -0.5. This result implies increased cigarette taxes may help control health care utilization and expenditures. In addition, the estimated effects of physician prices, income, and socio-demographics are presented and discussed.

Date: 1990
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