The Demand for Health: An Empirical test of the Grossman Model Using Panel Data

Drug therapy adherence and health outcomes in the presence of physician and patient unobserved heterogeneity

“…Among others, Burroughs, Maxey, and Levy (2002), Ginsburg, Donahue, and Newby (2005), Mahlknecht and Voelter-Mahlknecht (2005), Stewart (1996), and Roter, Hall, and Aoki (2002) are good examples that support this hypothesis. 3 See in particular Cropper (1981), Wagstaff (1986), Wagstaff (1993), Van Doorslaer (1987), Zweifel and Breyer (1997), Erbsland, Ried, and Ulrich (1995), Nocera andZweifel (1998), andGerdtham, Johannesson, Lundberg, andIsacson (1999). 4 In terms of salary, the most important source of income is capitation (70% of income on average)-the patient list depending on the physician's experience and the demographic characteristics of the patients-followed by subsidies for investments (10% to 15%) for medical integration, staff employed, equipment, and remuneration by performance (about 10%) in terms of meeting regional programme criteria or adopting cost control measures, fee-for-service for vaccinations, house calls, minor surgery, and issuing certificates.…”

Testing the Grossman model of medical spending determinants with macroeconomic panel data

“…Health status affects household utility directly -the so-called 'pure consumption' effect -and indirectly in that more 'healthy time' translates into higher labor income: the 'pure investment' effect. Following Grossman's (1972a) lead to validate his model empirically, a number of contributions have used micro data from household surveys to test it (Cropper 1981;Wagstaff 1986Wagstaff , 1993Leu and Gerfin 1992;Erbsland et al 1995;Nocera and Zweifel 1998;. The results were mixed, to say the least.…”

The Grossman model after 40 years

“…This author pleads guilty of joining the MGM bandwagon, too (thank heaven in a little-cited piece [16]!). The panel data analyzed consisted of Swiss health insurance records complemented by subjective health status and socioeconomic characteristics measured in 1989 and 1992 (sample I, N = 477) and in 1981 and 1992 (sample II, N = 212).…”

“…Our empirical results suggest that self-reported health changes are a preferred measure of health dynamics.'' Yet, this advice had already been followed by Nocera and Zweifel [16] but with limited success (see above). 2.…”