Demand for traditional medicine in Taiwan: A mixed gaussian-poisson model approach

Steven T. Yen*, Chao Hsiun Tang, Shew Jiuan B. Su

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)


Hurdle count models are used to examine the participation and consumption decisions in Chinese medicine use. Motivated by a household production model, a second censoring mechanism is introduced into existing single-hurdle models, and the resulting specification accommodates conscientious abstainers, as well as economic non-consumers, and admits excessive zeros in the sample. In contrast to previous studies that found few predictors, empirical results based on a Taiwanese national sample suggest that Western medicine is a gross substitute to Chinese medicine, and both time price and money price play more important roles than income. Insurance, lifestyle and demographics also determine the use of Chinese medicine.

Original languageEnglish
Pages (from-to)221-232
Number of pages12
JournalHealth Economics
Issue number3
Publication statusPublished - 2001
Externally publishedYes


  • Chinese medicine
  • Count data
  • Excessive zeros
  • Two-part model

ASJC Scopus subject areas

  • Health Policy


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