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Demand for traditional medicine in Taiwan: a mixed Gaussian–Poisson model approach
Author(s) -
Yen Steven T.,
Tang ChaoHsiun,
Su ShewJiuan B.
Publication year - 2001
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.582
Subject(s) - censoring (clinical trials) , economics , demographics , econometrics , consumption (sociology) , poisson distribution , sample (material) , actuarial science , statistics , demography , mathematics , social science , chemistry , chromatography , sociology
Hurdle count models are used to examine the participation and consumption decisions in Chinese medicine use. Motivated by a household production model, a second censoring mechanism is introduced into existing single‐hurdle models, and the resulting specification accommodates conscientious abstainers, as well as economic non‐consumers, and admits excessive zeros in the sample. In contrast to previous studies that found few predictors, empirical results based on a Taiwanese national sample suggest that Western medicine is a gross substitute to Chinese medicine, and both time price and money price play more important roles than income. Insurance, lifestyle and demographics also determine the use of Chinese medicine. Copyright © 2001 John Wiley & Sons, Ltd.