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Health care system in rural China: A quantitative approach based on heterogeneous individuals

Author

Listed:
  • FENG Jin

    (School of Economics, Fudan University, Shanghai 200433, China)

  • SONG Zheng

    (School of Economics, Fudan University, Shanghai 200433, China)

Abstract

This paper is aimed to provide some responses to the following three hotly debated issues regarding China¡¯s new rural cooperative medical system (NCMS), which was launched at the beginning of 2003. Firstly, how many people would join the system voluntarily? Secondly, can the system be self-balanced? And thirdly, would the lump-sum tax benefit the rich more than the poor? We build a decision model with heterogeneous agents and we compute the implications of NCMS and find under certain conditions, the balanced-system can be sustained and the rate of participation could be higher than 90%. Moreover, it is the unhealthy poor that benefit more from NCMS.

Suggested Citation

  • FENG Jin & SONG Zheng, 2009. "Health care system in rural China: A quantitative approach based on heterogeneous individuals," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 4(2), pages 153-172, June.
    • Handle: RePEc:fec:journl:v:4:y:2009:i:2:p:153-172
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-009-0009-0
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    Citations

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    Cited by:

    1. Audibert, Martine & Mathonnat, Jacky & Pelissier, Aurore & Huang, Xiao Xian & Ma, Anning, 2013. "Health insurance reform and efficiency of township hospitals in rural China: An analysis from survey data," China Economic Review, Elsevier, vol. 27(C), pages 326-338.
    2. Martine AUDIBERT & Jacky MATHONNAT & Aurore PELISSIER & Xiao Xian HUANG & Anning MA & Ningshan CHEN, 2011. "Curative Activities of Township Hospitals in Weifang Prefecture, China: An Analysis of Environmental and Supply-Side Determinants," Working Papers 201130, CERDI.
    3. Martine AUDIBERT & Jacky MATHONNAT & Aurore PELISSIER & Xiao Xian HUANG & Anning MA & Ningshan CHEN, 2011. "Curative Activities of Township Hospitals in Weifang Prefecture, China: An Analysis of Environmental and Supply-Side Determinants," Working Papers 201130, CERDI.

    More about this item

    Keywords

    rural medical system; rate of participation; welfare implications;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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