Abstract
The paper presents an empirical model of the demand of health care in Belgium. The analysis pertains to 17 categories of medical care and to two subgroups of health insurance beneficiaries, namely the ‘active’ and the ‘widows, orphans, pensioners and invalids’. The estimation results show that income and relative prices matter in the demand for medical care. Supplier induced demand is also detected for a number of medical care categories. Other explanatory variables in the model include the size of the child population, climatic conditions and a time trend, representing technological advances in health care.
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