A survey of users of New York Municipal Hospital Outpatient Departments was used to examine factors that determine demand for medical services. In particular, this study concentrates on nonmonetary factors that may be important as money prices fall (due to spreading health insurance or the enactment of National Health Insurance legislation). After developing predictions with a utility maximization model, a simultaneous equation system was specified such that the distance one travels to receive free ambulatory care is endogenous. The empirical results support the major predictions of the formal model. A number of suggestions are made for policymakers either at the federal or city level.
This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.
Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.