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An Empirical Analysis of Income Elasticity of Out-of-Pocket Healthcare Expenditure in Mauritius
Department of Economics and Statistics, Open University of Mauritius, Reduit 80837, Mauritius.
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Social Sciences.
2022 (English)In: Healthcare, E-ISSN 2227-9032, Vol. 10, no 1, article id 101Article in journal (Refereed) Published
Abstract [en]

A free universal healthcare provision exists in Mauritius. Yet the share of out-of-pocket healthcare expenditure out of total household expenditure has been growing over time. This study estimates income elasticity of out-of-pocket healthcare expenditure using Mauritian household data within an Engel curve framework. In the absence of longitudinal data on out-of-pocket healthcare expenditure patterns, the study proposes the application of the pseudo-panel approach using cross-sectional Household Budget Survey waves from 1996/97 to 2017. Income elasticity of out-of-pocket healthcare expenditure is estimated to be 0.938, which is just below unity. This implies that out-of-pocket healthcare demand is not considered to be a luxury, but a necessity in Mauritius. In order to see the differences in income elasticities by income groups, separate regressions are estimated for each income quartile over different years. The results indicate that income elasticities of out-of-pocket healthcare expenditure vary non-monotonically.

Place, publisher, year, edition, pages
MDPI, 2022. Vol. 10, no 1, article id 101
Keywords [en]
Income elasticity, Non-monotonicity, Out-of-pocket healthcare expenditure, Pseudo-panel
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-88879DOI: 10.3390/healthcare10010101ISI: 000757679700001PubMedID: 35052265Scopus ID: 2-s2.0-85122269317OAI: oai:DiVA.org:ltu-88879DiVA, id: diva2:1631378
Note

Validerad;2022;Nivå 2;2022-01-24 (johcin)

Available from: 2022-01-24 Created: 2022-01-24 Last updated: 2022-07-05Bibliographically approved

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Jaunky, Vishal Chandr

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CiteExportLink to record
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