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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front Econ Chin    2009, Vol. 4 Issue (2) : 153-172    https://doi.org/10.1007/s11459-009-0009-0
research-article |
Health care system in rural China: A quantitative approach based on heterogeneous individuals
FENG Jin(), SONG Zheng()
School of Economics, Fudan University, Shanghai 200433, China
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Abstract

This paper is aimed to provide some responses to the following three hotly debated issues regarding China’s new rural cooperative medical system (NCMS), which was launched at the beginning of 2003. Firstly, how many people would join the system voluntarily? Secondly, can the system be self-balanced? And thirdly, would the lump-sum tax benefit the rich more than the poor? We build a decision model with heterogeneous agents and we compute the implications of NCMS and find under certain conditions, the balanced-system can be sustained and the rate of participation could be higher than 90%. Moreover, it is the unhealthy poor that benefit more from NCMS.

Keywords rural medical system      rate of participation      welfare implications     
Corresponding Authors: FENG Jin,Email:jfeng@fudan.edu.cn; SONG Zheng,Email:zsong@fudan.edu.cn   
Issue Date: 05 June 2009
 Cite this article:   
FENG Jin,SONG Zheng. Health care system in rural China: A quantitative approach based on heterogeneous individuals[J]. Front Econ Chin, 2009, 4(2): 153-172.
 URL:  
http://academic.hep.com.cn/fec/EN/10.1007/s11459-009-0009-0
http://academic.hep.com.cn/fec/EN/Y2009/V4/I2/153
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