Publication Type: Abstract
Abstract: Rationale: The prima facia evidence indicates that self-reported health status is a good proxy for mental and physical health. It has been used in studies that attempt to measure the relationship of socioeconomic factors to health status. In relationship to self-reported health status and its established importance in the literature, we ask a number of questions. How can the information contained in this variable be most effectively used? Is it best to only cast it only as an objective to be maximized, whereby decision makers attempt to utilize the tools of public policy to satisfy it? Does or can it be used for other purposes that help to better inform public health policy? What if any is its relationship to health cost and demand?

Objectives: The goal of this study is to assess the interrelationship between self-reported health status and the demand for health services within the context of a developing economy. Using data , which has only recently become available, we will look at the interrelationship of self-reported health status of the elderly and various measures of the demand and costs for health services in the small island country of Barbados. The key objective is to model self-reported health status within the context of a simultaneous system and not as a stand-alone dependent variable, which one attempts to explain.

Methodology: Within the context of a simultaneous-equation model, we will assess the interrelationship between self-reported health status and other health related variables such as health expenditures, health insurance availability and various socioeconomic variables. Given the nature of the variables that we are attempting to model, we will use econometric estimation techniques used to handle a mix of discrete and continuous variables.

Research Hypothesis: It is our hypothesis that there is interdependent relationship between self-reported health status and the demand for health services. Not surprisingly, the opportunity costs of health services is hypothesized to be negatively related to self-reported health status, and in turn self-reported health status is hypothesized to be negatively related to health-service demand.