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Demand for medical care in the urban areas of Iran: an empirical investigation

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  • Majid S. Kermani
  • Hossein Ghaderi
  • Ayoub Yousefi

Abstract

This paper adapts a multinomial logit model to obtain the parameter estimates of demand with multiple choices for medical care services in the urban areas of Iran. The objective is to verify the effectiveness of the cost recovery policy by the Medical Services Insurance Organization of Iran. The results suggest that an out‐of‐pocket fee increase will not be conducive to the cost recovery and any increase in price would have a serious negative impact on the likelihood of healthcare utilization. Income appears to have a significant positive effect on the decision to seek medical care and the choice of facilities. Patients from wealthy families seem to seek more health care and prefer private facilities. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Majid S. Kermani & Hossein Ghaderi & Ayoub Yousefi, 2008. "Demand for medical care in the urban areas of Iran: an empirical investigation," Health Economics, John Wiley & Sons, Ltd., vol. 17(7), pages 849-862, July.
    • Handle: RePEc:wly:hlthec:v:17:y:2008:i:7:p:849-862
    DOI: 10.1002/hec.1308
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    References listed on IDEAS

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    Cited by:

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    2. Erlyana, Erlyana & Damrongplasit, Kannika Kampanya & Melnick, Glenn, 2011. "Expanding health insurance to increase health care utilization: Will it have different effects in rural vs. urban areas?," Health Policy, Elsevier, vol. 100(2), pages 273-281.
    3. Richard Andrew Iles, 2013. "Demand for primary healthcare in rural north India," 2013 Papers pil50, Job Market Papers.

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