A supply-demand model of health care financing with an by Ricardo A. Bitran

By Ricardo A. Bitran

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Generally, the former have higher income than the latter. 4. See Technical Appendix B for a derivation of the expressions for the demand equations. Page 17 The demand by the uninsured who pay the full price is computed through the model by plugging into the demand formulas the full price of each provider, the household income, and the average household travel distance. The demand by the insured people is computed similarly, although a lower out-of-pocket price, the copayment, is entered as the health center price.

If so, please contact me and I will try to correct them. RICARDO BITRAN Page xi Acknowledgments The development of this model has been made possible thanks to the financial support of the Resources for Child Health Project (REACH), the Zaire-based Basic Rural Health Project (SANRU), and the Economic Development Institute (EDI) of the World Bank. I wish to thank David Dunlop, from the World Bank, and Gerald Rosenthal, from REACH, for their encouragement and for being patient enough to sit through numerous presentations of the model.

A Change in Population Size A higher (lower) population will bring about a proportionally higher (lower) demand from all providers. Its effect on the direction of the change in Q, TR, and TC will be equivalent to that of a change in the illness incidence rate. 12 As in the preceding cases, the effect on the focus facility's NI will depend on the relative magnitude of MC and P. 13 If the average distance from a representative household to the focus health facility increases, so will travel time.

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