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Health Care Use, Out-of-Pocket Expenditure, and Macroeconomic Conditions during the Great Recession

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  • Du Juan

    (Department of Economics, Old Dominion University, Constant Hall 2021, Norfolk, VA 23529, USA)

  • Yagihashi Takeshi

    (Department of Economics, Old Dominion University, Constant Hall 2021, Norfolk, VA 23529, USA)

Abstract

We study how macroeconomic conditions during the Great Recession affected health care utilization and out-of-pocket expenditures of American households. We use two data sources: the Consumer Expenditure (CE) Survey and the Survey of Income and Program Participation (SIPP); each has its own advantages. The CE contains quarterly frequency variables, and the SIPP provides panel data at the individual level. Consistent evidence across the two datasets shows that utilization of routine medical care was counter-cyclical, whereas hospital care was pro-cyclical during the Great Recession. When we examine the pre-recession period, the relationship between macroeconomic conditions and health care use was either non-existent or in opposite directions, suggesting that this relationship may have been unique to the Great Recession.

Suggested Citation

  • Du Juan & Yagihashi Takeshi, 2015. "Health Care Use, Out-of-Pocket Expenditure, and Macroeconomic Conditions during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(1), pages 119-156, January.
    • Handle: RePEc:bpj:bejeap:v:15:y:2015:i:1:p:38:n:11
    DOI: 10.1515/bejeap-2014-0016
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    References listed on IDEAS

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    1. A. C. Cameron & P. K. Trivedi & Frank Milne & J. Piggott, 1988. "A Microeconometric Model of the Demand for Health Care and Health Insurance in Australia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(1), pages 85-106.
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    1. Juan Du & Takeshi Yagihashi, 2017. "Health capital investment and time spent on health-related activities," Review of Economics of the Household, Springer, vol. 15(4), pages 1215-1248, December.
    2. Baughman Reagan, 2018. "Employment in Long-Term Care: The Role of Macroeconomic Conditions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(4), pages 1-12, October.
    3. Grigorakis, Nikolaos & Floros, Christos & Tsangari, Haritini & Tsoukatos, Evangelos, 2018. "Macroeconomic and financing determinants of out of pocket payments in health care: Evidence from selected OECD countries," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1290-1312.
    4. Purcel, Alexandra-Anca & Dragos, Cristian Mihai & Mare, Codruța & Dragos, Simona Laura, 2023. "Voluntary health insurance and out-of-pocket payments in European OECD countries," Economic Modelling, Elsevier, vol. 120(C).

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