Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 205: New Estimates of the Demand for Health: Results Based on a Categorical Health Measure and Swedish Micro Data

Ulf-G Gerdtham () and Magnus Johannesson ()
Additional contact information
Ulf-G Gerdtham: Dept. of Economics, Stockholm School of Economics, Postal: P.O. Box 6501, S-113 83 Stockholm, Sweden
Magnus Johannesson: Dept. of Economics, Stockholm School of Economics, Postal: P.O. Box 6501, S-113 83 Stockholm, Sweden

Abstract: In this paper we estimate a 'Grossman' model of demand for health based on Swedish micro data. The data set consists of a random sample of over 5,000 individuals taken from the Swedish adult population. Health capital is measured by a categorical measure of overall health status, and an ordered probit model is used to econometrically estimate the demand-for-health equation. The results are consistent with the theoretical predictions and show that the demand for health increases with income and education and decreases with age, overweight, urbanisation and being single.

Keywords: Demand for health; health production; human capital; health status

JEL-codes: D12; I12; J24

24 pages, November 7, 1997

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