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Rural Urban Differentials in Health Insurance Demand

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  • Brijesh C Purohit

    ((Corresponding author), Madras School of Economics)

Abstract

In this study an attempt is made to explore rural urban differentials in elasticity of health insurance demand in India. Both the Central and state governments have been trying to help people through their budgetary policies by providing state sponsored health insurance schemes. Keeping in view their efforts and rural urban disparities in the country, we have tried to make an attempt to evaluate whether the people have been provided appropriate information about these governmental policies and how the socio economic factors are influencing the individual household choices to adopt a particular type of health insurance scheme. This is based on latest National Family Health survey which provides health insurance demand data for rural and urban areas as well as aggregate level using household as units. Using logit model our results indicate that both in rural and urban areas these efforts have helped people to adopt suitable alternatives and the results indicate that socioeconomic factors and rising levels of income in urban areas relatively to rural areas have been reflected in more responsive nature of choices for different health insurance schemes. By contrast, though the impact of these factors is also significant in rural areas but with a lower elasticity of demand for health care insurance.

Suggested Citation

  • Brijesh C Purohit, 2021. "Rural Urban Differentials in Health Insurance Demand," Working Papers 2021-212, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2021-212
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    References listed on IDEAS

    as
    1. Zeckhauser, Richard, 1970. "Medical insurance: A case study of the tradeoff between risk spreading and appropriate incentives," Journal of Economic Theory, Elsevier, vol. 2(1), pages 10-26, March.
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    3. Ellis, Randall P. & McGuire, Thomas G., 1986. "Provider behavior under prospective reimbursement : Cost sharing and supply," Journal of Health Economics, Elsevier, vol. 5(2), pages 129-151, June.
    4. Kutzin, Joseph, 2001. "A descriptive framework for country-level analysis of health care financing arrangements," Health Policy, Elsevier, vol. 56(3), pages 171-204, June.
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    More about this item

    Keywords

    health insurance schemes; India; rural areas; urban areas; Orissa; Tamil Nadu;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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