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The 1995/1996 Household Income, Expenditure - (PDF, 101 mb ...

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VIII. 5<br />

Average Annual <strong>Expenditure</strong>s on Medical Goods and Services, and Budget<br />

Shares of Medical <strong>Expenditure</strong>s, Rural and Urban, by Quintile, for Two HIECS<br />

1990/1991<br />

Overall Quintl Quint2 Quint3 Quint4 Quint5<br />

Rural Mean (£E) 154.47 97.33 134.03 149.36 170.04 221.62<br />

Rural Share (%) 3.22 2.09 2.57 2.90 3.43 5.13<br />

Urban Mean 219.00 152.86 179.10 200.95 256.18 305.97<br />

(£E)<br />

Urban Share 4.50 2.59 3.15 3.68 5.08 8.02<br />

(%)<br />

<strong>1995</strong>/<strong>1996</strong><br />

Rural Mean (£E) 208.47 158.93 172.79 190.89 214.97 299.33<br />

Rural Share (%) 3.36 2.38 2.75 3.01 3.35 5.20<br />

Urban Mean 301.71 236.77 261.02 288.02 343.02 376.27<br />

(£E)<br />

Urban Share 4.39 3.15 3.52 3.93 4.90 6.38<br />

(%)<br />

Budget shares for medical goods and services rise over the quintiles of<br />

equivalence-adjusted expenditures. In the rural areas, budget shares have<br />

risen over time; in the urban areas, they have declined for the higher<br />

quintiles: this is an artifact of constrained supply in rural areas. <strong>The</strong> urban<br />

shares in the highest quintile are quite high, reflecting the high cost of<br />

elective medicine and procedures chosen by the richest patients.<br />

VIII.B.3 Regressing Medical <strong>Expenditure</strong>s<br />

<strong>The</strong> third type of comparison which might be made over time has to do<br />

with the relative effect of household characteristics on household total annual<br />

medical expenditures. Table VIII.2 shows the coefficient values for household<br />

demographic effects on total medical expenditures for both surveys. <strong>The</strong>se<br />

demographics include attributes of the head of the household (age, sex and<br />

education), household total expenditure, nu<strong>mb</strong>er of individuals fitting into each<br />

of six age/sex categories for children, the nu<strong>mb</strong>er of household me<strong>mb</strong>ers, and<br />

the region of the country. <strong>The</strong> equations are in level £E. Overall the fit of<br />

both equations is acceptable given the criterion of experience, and with the<br />

application of the usual caveat, that these are not deterministic models. It<br />

must also be noted that the 1990/1991 HIECS equation's intercept is not<br />

significant at an acceptable level; this could be due to a non-unique merging<br />

of the three data sets, because the medical expenditures datafile is missing<br />

the variable for PERIOD (the quarter of the year in which the data were<br />

collected).<br />

Being a male household head is associated with a decrease in medical<br />

expenditures, ceteris paribus. After the head reaches a secondary education

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