Research on the Promotion Effect of Basic Medical Insurance on Household Consumption / 中国卫生经济

Objective: To study the impact of basic medical insurance on household consumption. Methods: According to the panel data of the east, central and west regions from 2002 to 2011, time and entity fixed effect model (Two-way FE) is established to test the relationship between the basic medical insurance and household consumption. Results: The basic medical insurance has significant positive effects on consumption, the consumption increased 10%, 16% and 19% in regions of East, Middle and West, respectively. Conclusion: The construction and improvement of the social medical insurance system improve the growth of the consumption, and the government should enhance the security, and consider the regional differences at the same time.