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The thesis discusses health financing policy, introducing or
enhancing direct payment for health services in low income
countries from a viewpoint of equity through theoretical and
empirical economic analysis using the case of urban Zambia. It
analyses equity implications of alternative direct payment
mechanisms to user fee. These alternative payment mechanisms are
compared with the theory of consumer's choice in an econometric
framework. Two theoretical models: demand for alternative payment
mechanisms and demand for health services under chosen direct
payment mechanisms, are elaborated applying expected utility theory
and the law of demand, respectively. These models illustrate the
effects of fee schedule, income, perceived health status and
perceived quality of care on consumer's demand for health services.
These demand models also predict the theoretical equity
implications of alternative payment mechanisms. These theoretical
explorations are empirically tested with data from the study field.
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