Abstract

Analysis of Rural Households Behavior in Case of Healthcare Expenditure Considering Income Deciles (Iran: 2009-2014)

This study is performed to compare healthcare expenditure patterns of different income deciles of Iranian rural households during 2009 to 2014. The econometric method is ordinary least square (OLS). Data is devised from National household survey data. It consists of healthcare expenditure, family income, the literacy level of parents, number of children and the average age of parents. This paper tries to quantify the degree of effectiveness of each variable on healthcare expenditure among different income deciles. It is also needed to examine if there is a statistically significant difference between effects of variables on healthcare expenditure during different income deciles. The findings verify that there is a significant difference in healthcare expenditure patterns between different income deciles. They show that in the first six deciles a similar pattern is observed. In these deciles, the level of education of parents doesn’t demonstrate a significant effect on the healthcare expenditure and a percent increase in the family income increases the healthcare expenditure less than 1%. Moreover, except for education level, other variables have a positive effect on the healthcare expenditure. Almost the same scheme is present on the remaining income deciles. Here, while literacy level of mother has a negative effect on healthcare expenditure, other variables including family income, average age of parents and number of children reveals a positive effect. These results could be interpreted as preventive effect of literacy level. Thus, in rural families, the contribution of mother to the management of healthcare expenditure is more effectual than father. On the other hand, ninth and tenth deciles indicate that a percent increase in family income, result in more than 1% increase in healthcare expenditure. Therefore, healthcare authorities are highly suggested to thrive to lift the awareness level of family. The same instruction could be to categorize base on the average age of parents. This could be performed via government agencies or insurance authorities.

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