Economics of self-medication: theory and evidence.
A pervasive phenomenon in developing countries is that self-prescribed medications are purchased from drug vendors without professional supervision. In this article we develop a model of self-medicating behavior of a utility-maximizing consumer who balances the benefits and risks of self-medication. The empirical investigation focuses on the role of income and health insurance on the use of self-medication. Our data are from the World Bank's Living Standards Measurement Survey of Vietnam, 1997-1998. The results show that self-medication is an inferior good at high income levels and a normal good at low income levels, and it shows a strong and robust negative insurance effect.
Chang
Fwu-Ranq
FR
Department of Economics, Wylie Hall, Indiana University, Bloomington 47405, USA.
Trivedi
Pravin K
PK
D000293:Adolescent; D000328:Adult; D005260:Female; D006801:Humans; D019458:Insurance Coverage / Q000145:classification / Q000191:economics; D007348:Insurance, Health / Q000191:economics; D007356:Insurance, Pharmaceutical Services / Q000706:statistics & numerical data; D008297:Male; D017059:Models, Econometric; D009313:National Health Programs; D004366:Nonprescription Drugs / Q000191:economics*; D010593:Pharmaceutical Services / Q000191:economics / Q000706:statistics & numerical data; D012651:Self Medication / Q000191:economics* / Q000706:statistics & numerical data; D014480:United Nations; D014744:Vietnam
D004366:Nonprescription Drugs