Estimating the Citizen's Medical and Healthcare Demand Function in terms of the Household Consumption Basket (Concentrated on Systematic Approach)

Health is one of human basic needs that each an individual person requires to be protected in this field. From the economic point of view, education and health are two main aspects of human capital which are considered as the fundamental principles of human beings economic efficiency and also the basic factors of poverty reduction, economic growth, and sustainable economic development in all societies. Therefore, economic policies issued by institutions such as Social Security Organization and other related entities can have significant impact on citizen demands for medical and health services. This research studies and estimates the demand function for health and medical sectors from 1992 to 2012 in Iran using the “Almost Ideal Demand System Model (AIDS)”. In fact, the main purpose of the present research is to estimate the model of health function and surveying income and price adjustability of demand function for medical and pharmaceutical services in the country. The results showed that the price of this group is a theoretically based one, and the positive evidence of income adjustability recognizes this group as a normal commodity one. Moreover, the group has the replacement relationship with other groups including foodstuffs, home furniture, recreation and education, and it has no correlation with other groups.