Estimation of the demand for health for urban households using Grossmans model in Shiraz, Iran

Purpose: To study the effects of socioeconomic variables on health stock using Grossman model in Shiraz, Iran. Materials and Methods: This was an applied, cross-sectional and analytical-descriptive study conducted in Iran, Shiraz in 2012. A sample of 1538 individuals from 769 households was determined using stratified sampling proportional to size and systematic random sampling methods. Health stock was measured using Quality of Life SF36 questionnaire, and an ordered probit model was used to econometrically estimate the demand for health equation. Results: The results showed that being male and having high school and university degrees had positive and significant effects on health stock (p<0.05). Also, ages over 44 years and being unemployed had negative, and significant effects on health stock (p <0.05). However, the estimated effects of monthly income level, public health insurance coverage status and supplementary health insurance coverage status were positive, but not significant. Conclusions: According to the results, the following suggestions can be made for improving individuals' health status: providing education opportunities and facilities for all, increasing health and wellness education programs at different education levels, providing health education for all people through the media at the appropriate time, implementing health subsidies and exemption from payment policies for the elderly, increasing recreational, and sports facilities for women, etc.