Abstract
ABSTRACT
The objective of this paper is to test the theoretical implications of the Grossman health demand model and to examine the determinants of self-assessed health in Oslo. The data set consists of a cross-sectional, population based study conducted as a part of a general health survey known as the Oslo Health Study. Health capital is measured by a categorical measure of overall health status. An ordered probit model is used to econometrically estimate the demand for health equation. The results are consistent with the theoretical predictions of the Grossman’s model. We found a decrease in the demand for health for age, weight, and smoking, we found an increase in the demand for health for level of education and marital status, organizational participation, and number of close friends. The effect of income was inconclusive: at lower levels of income, it was negatively significant, whereas at higher levels of income it was positively significant. Lifestyle variables such as drinking alcohol and smoking decrease the demand for health whereas doing physical activities increases health demand. The results also suggest that some inequity in health care with respect to nationality may be present in the current Norwegian health care system.