Catastrophic Medical Expenditure Risk

Gabriela Flores and Owen O'Donnell

No 12-078/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Medical expenditure risk can pose a major threat to living standards. We derive decomposable measures of catastrophic medical expenditure risk from reference-dependent utility with loss aversion. We propose a quantile regression based method of estimating risk exposure from cross-section data containing information on the means of financing health payments. We estimate medical expenditure risk in seven Asian countries and find it is highest in Laos and China, and is lowest in Malaysia. Exposure to risk is generally higher for households that have less recourse to self-insurance, lower incomes, wealth and education, and suffer from chronic illness.

Keywords: medical expenditures; catastrophic payments; downside risk; reference-dependent utility; Asia (search for similar items in EconPapers)
JEL-codes: D12 D31 D80 I13 I15 (search for similar items in EconPapers)
Date: 2012-07-24
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Related works:
Journal Article: Catastrophic medical expenditure risk (2016)
Working Paper: Catastrophic Medical Expenditure Risk (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20120078

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