Universal Journal of Public Health Vol. 9(5), pp. 268 - 275
DOI: 10.13189/ujph.2021.090509
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Health Demand in Indonesia: Health Stock Approach

Mohamad Ichwan ^1,*, Haerul Anam ¹, Samuel Y. Sir ¹, Sudarkam R. Mertosono ², Rita Yunus ^1
1 Faculty of Economics and Business, Universitas Tadulako, Indonesia
² Faculty of Teacher Training and Education, Universitas Tadulako, Indonesia

ABSTRACT

Health demand of Grossman Model recognizes three determinant factors in estimation model such as wage, education, and age. This study intends to examine the role of wage on health demand using measurement of total sick days and that of health days as measurement for health demand applying Econometrics Model in the form of Ordinary Least Squares (OLS) Technique. It employed household data from National Social Economy Survey Panel containing reports on the two areas examined among respondents in urban area. We found that the number of respondents who were ill was 6.642 and those who were not was 9.895. We also found that increase on wage reduced sick day total among working class families but not for middle class families, and it also triggered health time for both middle-working class families. Low Elasticity Coefficient indicated inelastic health demand which needs one-fold wage increase to improve one percent of health demand. Such inelasticity in demand can increase the price of medical services in long term and is potential for health stock disparity for the people. To avoid this, health insurance is needed to cover the people in order to improve health time of the people.

KEYWORDS
Health Demand, Wage, Grossman Model, Sick Day, Health Time, Health Stock and Health Insurance

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Mohamad Ichwan , Haerul Anam , Samuel Y. Sir , Sudarkam R. Mertosono , Rita Yunus , "Health Demand in Indonesia: Health Stock Approach," Universal Journal of Public Health, Vol. 9, No. 5, pp. 268 - 275, 2021. DOI: 10.13189/ujph.2021.090509.

(b). APA Format:
Mohamad Ichwan , Haerul Anam , Samuel Y. Sir , Sudarkam R. Mertosono , Rita Yunus (2021). Health Demand in Indonesia: Health Stock Approach. Universal Journal of Public Health, 9(5), 268 - 275. DOI: 10.13189/ujph.2021.090509.