Determinants of Household Health Expenditure: Case of Urban Orissa

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

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

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