Out-of-pocket health payments can cause financial hardship to households, which may push them into poverty. The purpose of this thesis is to examine the impact of out-of-pocket health payments on households' economic situation in Egypt using a national representative survey. On the other hand, the conventional poverty estimates do not take the effect of out-of-pocket health payments on households into account. Therefore, by reassessing the poverty estimates taking into account out-of-pocket health payments, this thesis provides new poverty estimates that reflect the poverty impact of out-of-pocket health payments. The thesis adopts the World Health Organization's methodology in measuring the extent of catastrophic health expenditure and impoverishment. It uses a logit model to identify the determinants of catastrophic health expenditure. The quantitative analysis yields that out-of-pocket health payments exacerbate households' living especially the poor and the near poor. The thesis suggests that 6% of households encounter catastrophic health expenditure in 2010. It estimates that the poverty line for a household composed of four members, which is the average household size, equals LE 673.8 per month. It suggests that the 19.1% of households spend below the poverty line. However, additional 7.4% of households fall below the poverty line after paying for health care. In other words, the size of poverty in Egypt including those who are impoverished by health payment is 26.5%. Additionally, out-of pocket health payments have exacerbated the normalized poverty gap by 1.4%. The econometric analysis suggests that household with chronic sick member and poor households are the most vulnerable to catastrophic health expenditure.
MA in Economics
Date of Award
Online Submission Date
Library of Congress Subject Heading 1
Medical care, Cost of -- Egypt.
Library of Congress Subject Heading 2
Health services accessibility -- Egypt.
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(2011).Catastrophic health expenditure and poverty in Egypt: an analysis of household survey data [Master’s thesis, the American University in Cairo]. AUC Knowledge Fountain.
Rashad, Ahmed. Catastrophic health expenditure and poverty in Egypt: an analysis of household survey data. 2011. American University in Cairo, Master's thesis. AUC Knowledge Fountain.