Research on the demand for health services.

Abstract

A Framework for Analysis The sharp rise in the prices of medical care services and expenditures on medical care over the past 20 years has been the major cause for concern over the adequate provision and financing of health services.' If each person's consumption of medical care services were small and the prices charged for these services were low, the welfare aspects of the problem would diminish as would the costs of misallocation of medical care resources. Time could then be spent analyzing other problems of concern to society. Unfortunately, the converse is largely true. Therefore, to avoid costly errors in planning and to minimize the hardships of any unmet needs, the factors that influence prices and utlization in the medical care market must be understood.