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The Palestinian Economy. Theoretical and Practical Challenges

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Assessing the Causes of Inequality in Health Care<br />

Delivery System in Palestine<br />

Mohammad Abu-Zaineh <strong>and</strong> Awad Mataria <br />

Abstract: Income-related inequalities <strong>and</strong> horizontal inequities in health care<br />

utilisation have recently been widely studied using linear additive models of<br />

decopmostion. This paper applies new methods of decompostion “by<br />

factors”, based on microsimulation technique. Besides avoiding the<br />

“unavoidable price” of linearity restriction that is imposed by the “st<strong>and</strong>ard”<br />

method, the microsimulation-based decompostion enables to duck the<br />

potentially contentious role of heterogeneity in genuine individuals’<br />

behaviour in the analysis of inequality, as well as the institutional features<br />

<strong>and</strong> practices driving inequity. <strong>The</strong> decomposition method is applied to twostage<br />

utilisation (the probability of usage <strong>and</strong> the conditional usage – using<br />

the combined Logit-zero truncated Negbin models) for three levels of health<br />

care delivery: primary, secondary <strong>and</strong> tertiary, particular to the specific<br />

context of the two occupied territories of Palestine (OPT): the West Bank<br />

(WB) <strong>and</strong> Gaza Strip (GS). <strong>The</strong> data are taken from the first national survey<br />

on health care use <strong>and</strong> expenditure, which provide detailed information about<br />

utilisation <strong>and</strong> morbidity. Our empirical results suggest that the worse-off do<br />

have disproportionately greater need for all levels of care, but with the<br />

expectation of primary-level, access to – <strong>and</strong> utilisation of – all levels of care<br />

appear to be significantly higher for the better-off. <strong>The</strong> incremental<br />

examination through microsimulation has made it possible to separately<br />

identify the relative contributions of factors driving such pro-rich patterns.<br />

While much of this inequity appear to be caused by omnipresent socioeconomic<br />

inequalities (by income), detailed analysis attributes a non-trivial<br />

part (circa 30% of the observed horizontal inequities) to heterogeneity in<br />

behaviour with respect to the rank of individuals in the income distribution.<br />

<br />

Department of Economics/Faculty of Commerce <strong>and</strong> Economics, Birzeit University. e-mail:<br />

mzaineh@birzeit.edu; mohammad.abu-zaineh@inserm.fr, alternate e-mail: mzaineh@gmail.com<br />

Corresponding author<br />

Institute of Community <strong>and</strong> Public Health, Birzeit University. e-mail: awad@birzeit.edu; alternate e-mail:<br />

amataria@gmail.com

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