DP Number DP-2012-001

Language 英語のみ

Date August, 2012

Author Kazuki Kamimura

JEL Classification codes I12, C30

Keywords Medical expenditure, Bivariate Model, Substitute goods

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Abstract

In this paper, using Japanese Household Panel Survey (JHPS), we empirically
examine whether there is substitutability between doctor’s treatment and commercial
drugs. And moreover, we also examine how large the substitutability is.
First, as expected, there is some substitutability between commercial drugs and
doctor’s treatment. The degree of substitutability is not negligible.
Second, the substitutability depends on household income. The degree of substitutability
is higher at the lowest income group than the other group. Thus to promote
the policy to cut medical cost trough improving the accessibility of commercial drug,
some attention to the poor is necessary.