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The Effect of Time Price on the Demand for Medical-Care Services

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  • Rosanna M. Coffey

Abstract

This paper analyzes the effect of time price on medical-care demand and describes use of a reservation-wage question from a household survey to develop a measure of time price for obtaining medical care. A comprehensive three-equation model of the demand for female medical-care services examines choice of provider, entry demand, and the demand for physician visits. Results show that provider choice is based primarily on economic factors and that an expected high time price discourages women from choosing a public provider and from seeking gynecological, maternal-health, or family-planning services during the year, yet does not influence the number of visits made once care is used. The estimated model shows that medical-care demand equations should control for the type of provider chosen and the opportunity cost of time for alternative activities when testing for a negative time price effect of obtaining medical care.

Suggested Citation

  • Rosanna M. Coffey, 1983. "The Effect of Time Price on the Demand for Medical-Care Services," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 407-424.
  • Handle: RePEc:uwp:jhriss:v:18:y:1983:i:3:p:407-424
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    Cited by:

    1. Joan Costa-Font & Elias Mossialos & Caroline Rudisill, 2009. "When is the Internet a valued communication device for health information in Europe?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(5), pages 429-445.
    2. Wagner, Todd H. & Hu, Teh-wei & Hibbard, Judith H., 2001. "The demand for consumer health information," Journal of Health Economics, Elsevier, vol. 20(6), pages 1059-1075, November.
    3. Allen C. Goodman & Miron Stano & John M. Tilford, 1999. "Household Production of Health Investment: Analysis and Applications," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 791-806, April.
    4. Fabbri, Daniele & Monfardini, Chiara, 2009. "Rationing the public provision of healthcare in the presence of private supplements: Evidence from the Italian NHS," Journal of Health Economics, Elsevier, vol. 28(2), pages 290-304, March.
    5. Ritesh Banerjee & Ethan Cohen-Cole & Giulio Zanella, 2007. "Demonstration effects in preventive care," Supervisory Research and Analysis Working Papers QAU07-7, Federal Reserve Bank of Boston.
    6. Haizhen Mou, 2012. "The political economy of public health expenditure and wait times in a public‐private mixed health care system," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1640-1666, November.
    7. Jacob Nielsen Arendt, 2012. "The Demand for Health Care by the Poor under Universal Health Care Coverage," Journal of Human Capital, University of Chicago Press, vol. 6(4), pages 316-335.
    8. Sherry Glied & Christina Hoven & Robert Moore & A. Bowen Garrett, 1996. "Medicaid and Service Use Among Homeless Adults," NBER Working Papers 5834, National Bureau of Economic Research, Inc.
    9. Takaku, Reo & Bessho, S., 2017. "Do benefits in kind or refunds affect health service utilization and health outcomes? A natural experiment from Japan," Health Policy, Elsevier, vol. 121(5), pages 534-542.
    10. Mary Zimmerman Murphy, 1987. "The Importance of Sample Selection Bias in the Estimation of Medical Care Demand Equations," Eastern Economic Journal, Eastern Economic Association, vol. 13(1), pages 19-29, Jan-Mar.
    11. Wagner, Todd H. & Hu, Teh-wei & Duenas, Grace V. & Pasick, Rena J., 2000. "Willingness to pay for mammography: item development and testing among five ethnic groups," Health Policy, Elsevier, vol. 53(2), pages 105-121, September.
    12. Angulo, Ana María & Barberán, Ramón & Egea, Pilar & Mur, Jesús, 2011. "An analysis of health expenditure on a microdata population basis," Economic Modelling, Elsevier, vol. 28(1), pages 169-180.
    13. Óscar D. Lourenço & Pedro L. Ferreira, 2005. "Utilization of public health centres in Portugal: effect of time costs and other determinants. Finite mixture models applied to truncated samples," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 939-953, September.
    14. Natalia N. Borisova & Allen C. Goodman, 2003. "Measuring the value of time for methadone maintenance clients: willingness to pay, willingness to accept, and the wage rate," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 323-334, April.
    15. Tinglong Dai & Mustafa Akan & Sridhar Tayur, 2017. "Imaging Room and Beyond: The Underlying Economics Behind Physicians’ Test-Ordering Behavior in Outpatient Services," Manufacturing & Service Operations Management, INFORMS, vol. 19(1), pages 99-113, February.
    16. Akbar Marvasti, 2006. "A Contingent Valuation of Customer Delay in Medical Services," Eastern Economic Journal, Eastern Economic Association, vol. 32(1), pages 31-45, Winter.
    17. Yao Lu & David J. G. Slusky, 2019. "The Impact of Women's Health Clinic Closures on Fertility," American Journal of Health Economics, University of Chicago Press, vol. 5(3), pages 334-359, Summer.
    18. INUI Tomohiko & ITO Yukiko & KAWAKAMI Atsushi & MA Xin Xin & NAGASHIMA Masaru & ZHAO Meng, 2017. "Empirical Study on the Utilization and Effects of Health Checkups in Japan," Discussion papers 17082, Research Institute of Economy, Trade and Industry (RIETI).
    19. Kinge, Jonas Minet & Morris, Stephan, 2015. "The impact of childhood obesity on health and health service use: an instrumental variable approach," HERO Online Working Paper Series 2015:2, University of Oslo, Health Economics Research Programme.
    20. Lairson, David R. & Chan, Wenyaw & Newmark, Georgina R., 2005. "Determinants of the demand for breast cancer screening among women veterans in the United States," Social Science & Medicine, Elsevier, vol. 61(7), pages 1608-1617, October.
    21. Shou-Lin Yang & Chiung-Ying Lee, 2015. "Analysis of the medical demands of elderly dementia patients considering the caregiver cost of medical accompaniment: an application of the travel cost method and altruistic utility function," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 423-439, January.
    22. Tak, Hyo Jung & Hougham, Gavin W. & Ruhnke, Atsuko & Ruhnke, Gregory W., 2014. "The effect of in-office waiting time on physician visit frequency among working-age adults," Social Science & Medicine, Elsevier, vol. 118(C), pages 43-51.

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