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A Double-Hurdle Model of Healthcare Expenditures across Income Quintiles and Family Size: New Insights from a Household Survey

Author

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  • Ahmad Reshad Osmani

    (College of Business and Social Sciences, University of Louisiana Monroe, Monroe, LA 71209, USA)

  • Albert Okunade

    (Department of Economics, University of Memphis, Memphis, TN 38152, USA)

Abstract
The decision-making processes and outcomes of male and female household heads differ due to gender-based differences in preferences. In this paper, we assess the impact of this heterogeneity on household healthcare consumption in Thailand. Past studies modeling healthcare expenditures using household survey data used a gender dummy variable in regression models to control for household gender headship at the household level. Due to the endogeneity and self-selection bias in the past modelling approach, we separately modeled health expenditures for male and female household head decision makers. Using a household dataset from an earlier work, this study finds, using the double-hurdle model with dependent errors, that out-of-pocket health care spending tends to behave like a necessity across the income quintiles, household sizes, and differently for the separately modeled household gender heads. Moreover, male and female headed households responded differently to a major economic shock when adjusting household healthcare spending.

Suggested Citation

  • Ahmad Reshad Osmani & Albert Okunade, 2021. "A Double-Hurdle Model of Healthcare Expenditures across Income Quintiles and Family Size: New Insights from a Household Survey," JRFM, MDPI, vol. 14(6), pages 1-21, May.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:6:p:246-:d:566679
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    More about this item

    Keywords

    household-head gender; household health expenditure; double hurdle model; elasticity; health capital;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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