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A cluster analysis on income elasticity variations and US pharmaceutical expenditures

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  • Christine Huttin

Abstract

This paper examines the relationship between household income and outpatient prescribed medicines in the USA based on a sample of 2872 privately insured patients, from the 1987 NMES data set. The analysis is performed on regional typologies of different socioeconomic profiles of patients. Only a few groups show positive income elasticity.

Suggested Citation

  • Christine Huttin, 2000. "A cluster analysis on income elasticity variations and US pharmaceutical expenditures," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1241-1247.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1241-1247
    DOI: 10.1080/000368400404399
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    References listed on IDEAS

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    1. Huttin, Christine, 1994. "The use of prescription charges," Health Policy, Elsevier, vol. 27(1), pages 53-73, January.
    2. Parkin, David & McGuire, Alistair & Yule, Brian, 1987. "Aggregate health care expenditures and national income : Is health care a luxury good?," Journal of Health Economics, Elsevier, vol. 6(2), pages 109-127, June.
    3. Joseph P. Newhouse, 1977. "Medical-Care Expenditure: A Cross-National Survey," Journal of Human Resources, University of Wisconsin Press, vol. 12(1), pages 115-125.
    4. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    5. Marc Saez & Carles Murillo, 1994. "Shared ‘features’ in prices: Income and price elasticities for health care expenditures," Health Economics, John Wiley & Sons, Ltd., vol. 3(4), pages 267-279, July.
    6. Gerdtham, Ulf-G. & Sogaard, Jes & Andersson, Fredrik & Jonsson, Bengt, 1992. "An econometric analysis of health care expenditure: A cross-section study of the OECD countries," Journal of Health Economics, Elsevier, vol. 11(1), pages 63-84, May.
    7. Christine Huttin, 1997. "Income distribution and consumer demand for health services. The case of prescribed medicines in the USA," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 497-503.
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    Cited by:

    1. Adrian Müller, 2002. "Finding Groups in Large Data Sets," CEPE Working paper series 02-18, CEPE Center for Energy Policy and Economics, ETH Zurich.
    2. Don J. Webber & Andrew Mearman, 2012. "Students’ perceptions of economics: identifying demand for further study," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1121-1132, March.
    3. Ronald B. Larson, 2004. "New market groupings based on food consumption patterns," Agribusiness, John Wiley & Sons, Ltd., vol. 20(4), pages 417-432.
    4. Jesús Clemente & Carmen Marcuello & Antonio Montañés, 2008. "Pharmaceutical expenditure, total health‐care expenditure and GDP," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1187-1206, October.
    5. Gregory G. Lubiani & Albert A. Okunade & Weiwei Chen, 2018. "Income Elasticity Decomposition Models and Determinants of U.S. Pharmaceutical Expenditures," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(4), pages 389-403, December.
    6. Travis Lybbert, 2007. "Polarization & pricing to the rich," Applied Economics Letters, Taylor & Francis Journals, vol. 14(6), pages 389-394.

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