This paper develops a model of interdependent demand for medical care and the individual's health in Canada. The model examines the determinants of health and two types of health care services, using micro-level data from the 1994 to 1999 Canadian National Population Health Survey. The National Population Health Survey (NPHS) consists of detailed information of approximately 14,000 Canadians, including a continuous measure of their health status and health care utilization. A model accounting for the issues of simultaneity and limited dependent variables is used in estimation. The results suggest that a decrease in public health care utilization would have little impact on the health of Canadians. |