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Out-of-Pocket Payments for Medical Care

Student: Yashkova Polina

Supervisor: Liudmila S. Zasimova

Faculty: Faculty of Economic Sciences

Educational Programme: Economics (Bachelor)

Year of Graduation: 2018

Out of pocket payments for medical care are of great importance in Russia and many other developing countries. The phenomenon of informal payments for medical service is complex and demands detailed consideration. Shadow payments indicate institutional ineffectiveness and lead to several negative effects. This paper examines the issue of shadow payments as a phenomenon, cases of several former Soviet Union and post-communist counties and provides a detailed research on this issue in Russia. In literature review, necessary definitions are set; is a definition of parameters of informal payments; case study of FSU and post-communist countries and structured examination of out of pocket payments in Russia. Paper also provides two Heckprobit models on the RLMS-HSE database for 2016 and a logit model predicting the probability of giving an informal payment for ambulatory medical service. Main findings of the work are that pregnancy, free days at work and presence of the official payments influences probability of informal payments. Voluntary Insurance and size of the settlement have no causation with this probability. Overall, this paper addresses the gap in literature (as the majority of the papers focus on doctors) and gives practical outcome, as the problem demands attention from health care sector participants.

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