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Volume 2, Issue 2
July 1993
Pages 189–198
Econometrics and Health Economics
The demand for health: An empirical reformulation of the Grossman model
Authors

    Adam Wagstaff
    Corresponding author
        School of Social Sciences, University of Sussex, UK
        School of Social Sciences, University of Sussex, Brighton, BN1 9QN, England
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    First published: July 1993 Full publication history
    DOI: 10.1002/hec.4730020211 View/save citation
    Cited by: 43 articles
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Abstract

Previous tests of Grossman's model of the demand for health have been based on Grossman's own empirical formulation. This paper argues that this formulation fails to capture the dynamic character of the model. It proposes an alternative formulation, which appears to be more consistent with Grossman's theoretical model and which may also explain the apparent rejections of the model by the data in the author's earlier empirical work. The paper also presents some empirical results obtained using the new formulation, which are, on the whole, consistent with the predictions of Grossman's theoretical model.

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DOI
10.1002/hec.4730020211

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Keywords

    Demand for health;
    Grossman model;
    latent variables;
    health care utilization

Publication History

    Issue online: 18 September 2006
    Version of record online: 18 September 2006
    Manuscript Accepted: 12 March 1993
    Manuscript Received: 18 August 1992

References

    1 Grossman, M. The Demand for health: a theoretical and empirical investigation . New York , NBER, 1972 .
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    2 Muurinen, J. M. An economic model of health behaviour—with empirical applications to Finnish health survey data . Unpublished DPhil dissertation, York, University of York, 1982 .
    3 Wagstaff, A. The demand for health: some new empirical evidence . Journal of Health Economics , 1986 ; 5 : 195 – 233 .
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        Web of Science® Times Cited: 56 |
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    4 Jöreskog, K. G. and Goldberger, A. S. Estimation of a model with multiple indicators and multiple causes of a single latent variable . Journal of the American Statistical Association , 1975 ; 70 : 631 – 639 .
        CrossRef |
        Web of Science® Times Cited: 244 |
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    5 Bentzen, N. , Christiansen, T. and Pedersen, K. M. The Danish Health Study . Odense , Odense University, 1988 .
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    6 Buhmann, B. , Rainwater, L. , Schmaus, G. and Smeeding, T. Equivalence scales, well-being, incquality and poverty: sensitivity estimates across 10 countries using the Luxembourg Income Study database . Review of Income and Wealth . 1988 ; June: 115 – 142 .
    7 Jöreskog, K. G. and Sörbom, D. LISREL 7: A Guide to the Program and Applications , 2nd edn . Chicago IL , SPSS Inc, 1989 .
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    8 Jöreskog, K. G. and Sörbom, D. PRELIS: A Program for Multivariate Data Screening and Data Summarization. A Preprocessor for LISREL . Mooresville IA , Scientific Software Inc, 1986 .
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    9 van Doorslaer, E. K. A. Health, knowledge and the demand for medical care: an econometric analysis . Maastricht and Wolfeboro NH , van Gorcum, 1987 .
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Citing Literature

    Number of times cited : 43

    1 Christine Burggraf , Thomas Glauben , Wilfried Grecksch , New impacts of Grossman’s health investment model and the Russian demand for medical care, Journal of Public Health , 2016 , 24 , 1, 41 CrossRef
    2 Alice Sanwald , Engelbert Theurl , Out-of-pocket expenditure by private households for dental services – empirical evidence from Austria, Health Economics Review , 2016 , 6 , 1 CrossRef
    3 Alice Sanwald , Engelbert Theurl , Out-of-pocket expenditures for pharmaceuticals: lessons from the Austrian household budget survey, The European Journal of Health Economics , 2016 CrossRef
    4 Adam Wagstaff , Magnus Lindelow , ARE HEALTH SHOCKS DIFFERENT? EVIDENCE FROM A MULTISHOCK SURVEY IN LAOS, Health Economics , 2014 , 23 , 6, 706 Wiley Online Library
    5 Jennifer L. Kohn , Susan L. Averett , Can’t We Just Live Together? New Evidence on the Effect of Relationship Status on Health, Journal of Family and Economic Issues , 2014 , 35 , 3, 295 CrossRef
    6 Jennifer L. Kohn , Susan L. Averett , The effect of relationship status on health with dynamic health and persistent relationships, Journal of Health Economics , 2014 , 36 , 69 CrossRef
    7 Te-Fen Lo , Chee-Ruey Hsieh , Dynamic profile of health investment and the evolution of elderly health, Social Science & Medicine , 2013 , 76 , 134 CrossRef
    8 Titus J. Galama , Hans van Kippersluis , Health and Inequality, 2013 , 21 , 263 CrossRef
    9 Tetyana Demydas , Lifestyle factors, dietary quality and health: Econometric evidence from US micro data, Revue d’Études en Agriculture et Environnement , 2013 , 94 , 02, 135 CrossRef
    10 Jennifer L. Kohn , Jing Shi Liu , THE DYNAMICS OF MEDICAL CARE USE IN THE BRITISH HOUSEHOLD PANEL SURVEY, Health Economics , 2013 , 22 , 6, 687 Wiley Online Library
    11 Felipe de Figueiredo Silva , Evandro Camargos Teixeira , João Eustáquio de Lima , The Effect of the Early Entrance to Job Market on the Health Status of Brazilians in 2008: A Robustness Econometric Test, Procedia Economics and Finance , 2013 , 5 , 241 CrossRef
    12 John Ele-Ojo Ataguba , Olufunke Alaba , Explaining health inequalities in South Africa: A political economy perspective, Development Southern Africa , 2012 , 29 , 5, 756 CrossRef
    13 Paulina Correa-Burrows , Raquel Burrows , Ricardo Uauy , Cecilia Albala , Health production and risk of obesity among Chilean adolescents: Understanding health related behaviors in youth, Health , 2012 , 04 , 12, 1413 CrossRef
    14 Titus J. Galama , Patrick Hullegie , Erik Meijer , Sarah Outcault , IS THERE EMPIRICAL EVIDENCE FOR DECREASING RETURNS TO SCALE IN A HEALTH CAPITAL MODEL?, Health Economics , 2012 , 21 , 9, 1080 Wiley Online Library
    15 Peter Zweifel , The Grossman model after 40 years, The European Journal of Health Economics , 2012 , 13 , 6, 677 CrossRef
    16 Jennifer L Kohn , What is Health? A Multiple Correspondence Health Index, Eastern Economic Journal , 2012 , 38 , 2, 223 CrossRef
    17 Titus Galama , Arie Kapteyn , Grossman’s missing health threshold, Journal of Health Economics , 2011 , 30 , 5, 1044 CrossRef
    18 Danan Gu , Jessica Sautter , Cheng Huang , Yi Zeng , Health inputs and cumulative health deficits among the older Chinese, Social Science & Medicine , 2011 , 72 , 5, 806 CrossRef
    19 Philip Oreopoulos , Kjell G Salvanes , Priceless: The Nonpecuniary Benefits of Schooling, Journal of Economic Perspectives , 2011 , 25 , 1, 159 CrossRef
    20 Chanyoung Lee , Peter F. Orazem , Child Labor and the Transition between School and Work, 2010 , 31 , 99 CrossRef

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