Health Policy Manag.  2019 Sep;29(3):332-341. 10.4332/KJHPA.2019.29.3.332.

An Analysis on the Health and the Medical Demand in Korea: Using the Grossman Model

• Hwang Y
• Sakong J

• KMID: 2460881
• DOI: http://doi.org/10.4332/KJHPA.2019.29.3.332

Abstract

BACKGROUND
This study analyzes the effects of the individual's health behavior on the health and the medical demand for the management of health and medical expenses.
METHODS
This study uses the Korea Health Panel Survey data from 2010 to 2015. We utilize the panel ordered logit model and the panel Tobit model with the subjective health status and the medical expenses as the dependent variables.
RESULTS
Chronic diseases would cause the deterioration of his or her health and the increase in medical expenses. Smoking and drinking alcohol would deteriorate one's health. The total amount of cigarettes increases medical expenses. Exercises could make people healthier, whereas excessive exercise might increase medical expenses. Private health insurance would increase medical expenses.
CONCLUSION
Since health could reduce the medical expenses, people should promote one's health by changing one's behavior for health.

Keyword

Grossman model; Health demand; Medical demand; Panel ordered logit; Panel Tobit

MeSH Terms

Chronic Disease
Diagnostic Self Evaluation
Drinking
Exercise
Health Behavior
Insurance, Health
Korea*
Logistic Models
Smoke
Smoking
Tobacco Products
Smoke