Relationship between Out of Pocket Pay and Expenditure on Marketed Drug
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.