The selection of an appropriate count data model for modelling health insurance and health care demand: Case of Indonesia

Abstract

We apply several estimators to Indonesian household data to estimate the relationship between health insurance and the number of outpatient visits to public and private providers. Once endogeneity of insurance is taken into account, there is a 63 percent increase in the average number of public visits by the beneficiaries of mandatory insurance for civil servants. Individuals' decisions to make first contact with private providers is affected by private insurance membership. However, insurance status does not make any difference for the number of future outpatient visits. © 2010 by the authors; licensee Molecular Diversity Preservation International.