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Determinants of health insurance and hospitalization

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  • Tadashi Yamada
  • Tetsuji Yamada
  • Chia-Ching Chen
  • Weihong Zeng

Abstract

Our paper empirically examines how the decision to purchase private insurance and hospitalization are made based on household income, socio-demographic factors, and private health insurance factors in both Japan and the USA. Using these two data-sets, we found some similarities and dissimilarities between Japan and the United States. As income of households rises, households have a positive effect on purchasing health insurance as a normal good. Another similarity between the two countries is seen in the income effect on risk of hospitalization, which is negative for both Japanese and US cases. For dissimilarity, the insurance premium effect on risk of hospitalization is positive for the Japanese case, while negative for the US case. Since the Japanese insurance data had variables such as payments per day of hospitalization if household gets hospitalized, insurance payments upon death of an insured person, and annuity payments at maturity, we tested to see if these characteristics affect the risk of hospitalization for households; we do not eliminate a possibility of adverse selection. For the US pure health issuance characteristics, an increase in premium of health insurance policies cause individuals to substitute more health capital investment which causes lower risk of hospitalization.

Suggested Citation

  • Tadashi Yamada & Tetsuji Yamada & Chia-Ching Chen & Weihong Zeng, 2014. "Determinants of health insurance and hospitalization," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-27, December.
  • Handle: RePEc:taf:oaefxx:doi:10.1080/23322039.2014.920271
    DOI: 10.1080/23322039.2014.920271
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    Cited by:

    1. Marijana Curak & Dujam Kovac & Klime Poposki, 2021. "The Drivers Of Voluntary Private Health Insurance Demand In European Countries," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 30(2), pages 457-474, december.
    2. Nikolaos Grigorakis & Christos Floros & Haritini Tsangari & Evangelos Tsoukatos, 2017. "Combined social and private health insurance versus catastrophic out of pocket payments for private hospital care in Greece," International Journal of Health Economics and Management, Springer, vol. 17(3), pages 261-287, September.
    3. Medard, Turyamureba & Yawe, Bruno L. & Bosco, Oryema John, 2022. "Determinants of Demand for Private Health Insurance in Uganda," African Journal of Economic Review, African Journal of Economic Review, vol. 10(3), June.
    4. Richard J. Cebula & Zachary Ehrlich & Maggie Foley, 2024. "The impact of higher rent levels on private health insurance enrollment: An exploratory analysis for a single state, Virginia," American Journal of Economics and Sociology, Wiley Blackwell, vol. 83(1), pages 7-15, January.

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