(An) econometric study on a model of health production

Abstract

The problems of the current health care system in Korea and its health policy fall in three principal categories : problems of effectiveness, efficiency and equity. This study has grown out of an increasing concern that the health policy in Korea has misplaced emphasis among different means of improving health. A model of health production is formulated in this paper. The model postulates that four major factors determine the production of health. They are socio-economic, health services, environmental and genetic factor. Each factor is divided further into several variables as shown below. Socio-economic factor : income, education Health services : health input (health personnel, facility) health input-mix (labor-mix, capital-labor mix) Environmental factor : demographic variables modernization variables Genetic factor is excluded from this analysis because there are no data about it. The age-sex adjusted death rate is selected as negative index of health. The results from regressions employing the cross-sectional data of cities and guns in Korea as follows. 1. Education is the most important factor in determining death rate. Thus an investment in education would contribute to the improvement of health more than anything else. 2. A higher income is related to a better health and a higher income growth rate is related to a lower level of health. 3. In order to improve nation``s health, we have to establish many medical facilities regardless of their types and increase and improve the primary health care system. 4. Health facility is a more influential variable in determining mortality than health personnel. 5. Among health facilities, hospitals and clinics are most important one in influencing death rate. 6. Among health personnel, medical doctors exert more influence on mortality than any other professions. 7. Korea will be the aged society in 15-20 years. Therefore, we must be concerned about medical welfare rather than new medical technology.