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Quality of public health insurance and individuals’ consumption structure upgrades: evidence from China

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  • Pengfei Zhang

    (Renmin University of China)

  • Jinghua Gao

    (Heidelberg University)

Abstract

Background The aim of this study was to investigate the relationship between the quality of public health insurance and individuals’ consumption structure upgrades in China. Methods This study was conducted using data from a population of 6430 Chinese individuals aged 18 to 70 y from the 2017 Chinese Social Survey. We used multiple linear regression models and the two-stage least-squares model to explore the impact and heterogeneity of the quality of public health insurance on individuals’ consumption structure upgrades. Furthermore, we performed structural equation modelling to clarify the mediation effects of the impact. Results The quality of public health insurance was significantly correlated with individuals’ consumption structure upgrades (β = 0.368, SD = 0.084), and the impact of the quality of public health insurance on individuals’ hedonic consumption in urban regions was significantly higher than that in rural regions (β = 0.499, SD = 0.218). Furthermore, the quality of public health insurance could promote upgrades to individuals’ consumption structure by reducing the burden of medical expenses and stabilizing or increasing individuals’ expectations regarding the future economic level. Conclusion The results indicated that developing countries should implement additional measures to enhance the quality of public health insurance, which would not only help protect the health of individuals but also stimulate individuals’ consumption to achieve rapid economic growth.

Suggested Citation

  • Pengfei Zhang & Jinghua Gao, 2021. "Quality of public health insurance and individuals’ consumption structure upgrades: evidence from China," Health Economics Review, Springer, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:spr:hecrev:v:11:y:2021:i:1:d:10.1186_s13561-021-00343-x
    DOI: 10.1186/s13561-021-00343-x
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    References listed on IDEAS

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    1. Xiaoming Li, 1997. "Consumption demand, saving behaviour and rational expectations: an application of disequilibrium modelling to China 1952-92," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1411-1424.
    2. Pia Schneider & Kara Hanson, 2006. "Horizontal equity in utilisation of care and fairness of health financing: a comparison of micro‐health insurance and user fees in Rwanda," Health Economics, John Wiley & Sons, Ltd., vol. 15(1), pages 19-31, January.
    3. Yngwe, Monica Åberg & Fritzell, Johan & Burström, Bo & Lundberg, Olle, 2005. "Comparison or consumption? Distinguishing between different effects of income on health in Nordic welfare states," Social Science & Medicine, Elsevier, vol. 61(3), pages 627-635, August.
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    Cited by:

    1. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    2. Lu Chen & Miaoting Cheng, 2022. "Exploring Chinese Elderly’s Trust in the Healthcare System: Empirical Evidence from a Population-Based Survey in China," IJERPH, MDPI, vol. 19(24), pages 1-16, December.
    3. Yan Lu & Yuqi Zhou & Pengling Liu & Shiyun Zhang, 2022. "A Study on the Influence of the Income Structure on the Consumption Structure of Rural Residents in China," Sustainability, MDPI, vol. 14(16), pages 1-13, August.
    4. Zhou, Qiuyang, 2024. "Does the digital economy promote the consumption structure upgrading of urban residents? Evidence from Chinese cities," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 543-551.

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