Journal
JOURNAL OF HEALTH ECONOMICS
Volume 32, Issue 2, Pages 367-385Publisher
ELSEVIER
DOI: 10.1016/j.jhealeco.2012.11.007
Keywords
Health information; Hypertension; Diet; Regression discontinuity; China
Funding
- Hueg-Harrison Fellowship at University of Minnesota
- Grants-in-Aid for Scientific Research [23730255] Funding Source: KAKEN
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We examine the role of information in understanding the differential effects of income on the demand for health. In the health capital framework of Grossman (JPE, 1972), we derive the testable hypotheses that individuals adjust their diet in a healthier direction upon receiving negative health information, and that the effect is greater for richer individuals. Based on unique Chinese longitudinal data and a regression discontinuity design that exploits the exogenous cutoff of systolic blood pressure in the diagnosis of hypertension, we find that, upon receiving hypertension diagnosis, individuals reduce fat intake significantly, and richer individuals reduce more. Our results also indicate that among the rich, hypertension diagnosis is more effective for individuals with lower education. (C) 2012 Elsevier B.V. All rights reserved.
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