<p>This paper estimates a discrete choice model of outpatient care using data drawn from a household survey covering four&nbsp;regions and seven&nbsp;provinces in the Philippines. The choice alternatives include home care and formal care which consists of hospital outpatient clinics, independent private clinics, and public or charity clinics. Both simple logit model and nested logit specifications were estimated. Unlike the results in Gertler and van deer Gaag (1990), the data did not support rejection of the simple logit in favor of the nested logit model specification. The paper found that, contrary to early results (e.g., Akin et al. 1985), prices or user fees and income are important determinants of health care choice. The price elasticities, however, are small in magnitude compared to those in Ching (1995). However, just like the result in Ching (1995) there is a clear tendency for bigger price elasticities among lower income households compared to high income households.</p>

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