Determinants of Household Health Expenditure: Case of Urban Orissa



__________________TABLE 1: DESCRIPTIVE STATISTICS__________________

VARIABLES          ►

PER HEAD
INCOME

PER HEAD HEALTH
EXPENDITURE

EDUCATION

DESCRIPTIVE STATISTICS ⅛,

Mean_____________________

24220.83

________________1898.10

0.9669~

Standard Deviation______________

23546.06

_______________2466.27

_________0.1795

Coefficient of Variation__________

___________0.97

___________________________1.3

____________0.19

Highest Value__________________

140000.00

______________13100.00

____________1.00

Lowest Value_________________

_______2250.00

_________________137.50

____________0.00

Range______________________

137750.00

_______________12962.50

____________1.00

Source: Compiled from Primary Data

To find out the impact of household income and education of the head of the household
on the pattern of health expenditure (PHE) a linear regression model is fitted (see Table 2 and
Figure 1) as
PHE = -696.046 + 0.82PHI + 0.03EDN with R2 value 0.68, which indicates that a
rupee increase in income brings about 82 paise increase health expenditure of a person and an
educated person on an average spends three paise more in a rupee than the uneducated person on
health expenditure.

In both rural and urban areas
income has positive influence on
health expenditure but the influence is
more in urban area than rural area. In
finding out the influence of education
on health expenditure, it is found that,
in both rural and urban areas, an
educated person on an average spends
three paise more in a rupee than the
uneducated person (Rout, 2005). It indicates that education has same impact on health
expenditure irrespective of rural and urban areas.

Figure 1

Relationship between PHI and PHE

PHI

Source: Primary Data


TABLE 2

REGRESSION OUTPUT: ANOVA

Sum of Squares

df

Mean Square

F

Sig.

R2

Std error

D-W Stat.

Regression

497127930.086

___2

248563965.04

126.008

.000

.68

140.4945

1.634

Residual

232767381.533

188

1972604.928

Total_______

729895311.619

120

a Predictors: (Constant), EDN, PHI
b Dependent Variable: PHE



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