Health expenditure and health status in northern and Southern India: A comparative analysis
This study uses Almost Ideal Demand Systems (AIDS) model to present the health expenditure characteristics of Northern and Southern India using NSSO data of 71st round on Health and Education. We broadly keep positive analysis as to how various factors that comprise total health expenditure affect the weights given to each category of healthcare services. We found that more affluent state’s budget share are more sensitive to change in respective prices. Demand for healthcare services is less elastic in north than south because south states have higher literacy rate, and better infrastructure, govt. administration etc. if prices of healthcare services go up they will response more than low income states. Also demand responsiveness of any good do not depend only on prices of goods there are many other factors which affect demand.