Theoretical and Empirical Study on the Relationship between Household Health Investment and Government's Public Health Investment

Abstract

This paper studies empirically mutual influencing relationship between government's public health investment and household health investment by using Beijing data from 1986 to 2006, based on analysis of theoretical model between public health programs and private efforts to improve health and longevity. The results reveal that increase of public health investment will impel increase of household health investment, but if government has more rapid increase extent, then increase extent of household health investment is restrained. Furthermore, there exists long-term co-integration relationship among household health investment, disposable income and public health investment. At last, this paper provides some advices.