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Genetic testing, income distribution and insurance Markets

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  • Ray REES
  • Patricia APPS

Abstract

In many countries, fears that genetic testing may lead to a "genetic underclass" have led to restrictions on insurance companies' access to genetic information. This paper first shows that such restrictions are Pareto inefficient. The real problem appears to be that in the absence of such restrictions, outcomes on health insurance markets would be very inequitable. This paper analyses income redistribution policies to correct this, when income endowments differ in a way that may or may not be correlated with risk type.

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File URL: http://www.jstor.org/stable/20079174
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Bibliographic Info

Article provided by ENSAE in its journal Annals of Economics and Statistics.

Volume (Year): (2006)
Issue (Month): 83-84 ()
Pages: 353-368

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Handle: RePEc:adr:anecst:y:2006:i:83-84:p:14

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Cited by:
  1. Bardey, David & De Donder, Philippe, 2012. "Genetic testing with primary prevention and moral hazard," CEPR Discussion Papers 8977, C.E.P.R. Discussion Papers.
  2. Francesca Barigozzi & Dominique Henriet, 2011. "Genetic Information: Comparing Alternative Regulatory Approaches When Prevention Matters," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(1), pages 23-46, 02.
  3. Filipova-Neumann, Lilia & Hoy, Michael, 2014. "Managing genetic tests, surveillance, and preventive medicine under a public health insurance system," Journal of Health Economics, Elsevier, vol. 34(C), pages 31-41.

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