The Demand for Health Care

Health-care demand analysis provides information that policy makers can use to improve a population's health. Since demand estimates identify determinants of health-care utilization, the estimates could be used to design policies to improve access to health facilities. However, evidence on health-care demand alone is insufficient to implement policies aimed at improving health. To facilitate implementation of such interventions, it is necessary to link health-care utilization to health status. This article provides an exposition of a model that links health-care demand to health production. Implications of the model in settings of information imperfections and lack of self-control in health-care markets are analyzed.