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Optimal regulation of health system with induced demand and 'ex post' moral hazard

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  • David Bardey
  • Romain Lesur

Abstract

In this paper, we analyze the joint regulation of health care providers and health insurance contracts in a framework which contains both induced demand effects from physicians and ex post moral hazard behaviors from patients. After defining a framework where these two kinds of behaviors can be compatible, we exhibit that contrary to what we can observe in practice, a regulation that contains incentives on only one sector may be dominated by a policy-mix regulation.

Suggested Citation

  • David Bardey & Romain Lesur, 2006. "Optimal regulation of health system with induced demand and 'ex post' moral hazard," Annals of Economics and Statistics, GENES, issue 83-84, pages 279-293.
    • Handle: RePEc:adr:anecst:y:2006:i:83-84:p:279-293
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    File URL: http://www.jstor.org/stable/20079171
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    Cited by:

    1. Jihong Ding & Minglai Zhu, 2009. "A theoretical investigation of the reformed public health insurance in urban China," Frontiers of Economics in China, Springer;Higher Education Press, vol. 4(1), pages 1-29, March.
    2. Jacques Drèze & Erik Schokkaert, 2013. "Arrow’s theorem of the deductible: Moral hazard and stop-loss in health insurance," Journal of Risk and Uncertainty, Springer, vol. 47(2), pages 147-163, October.
    3. Philippe Batifoulier, 2014. "De l’aléa moral du patient aux inégalités d’accès aux soins," EconomiX Working Papers 2014-7, University of Paris Nanterre, EconomiX.
    4. Jeannette Brosig‐Koch & Burkhard Hehenkamp & Johanna Kokot, 2023. "Who benefits from quality competition in health care? A theory and a laboratory experiment on the relevance of patient characteristics," Health Economics, John Wiley & Sons, Ltd., vol. 32(8), pages 1785-1817, August.
    5. Bardey David & Bourgeon Jean-Marc, 2011. "Health Care Network Formation and Policyholders' Welfare," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(2), pages 1-20, January.
    6. Philippe Batifoulier & Nicolas Da Silva, 2014. "Medical Altruism in Mainstream Health Economics: Theoretical and Political Paradoxes," Review of Social Economy, Taylor & Francis Journals, vol. 72(3), pages 261-279, September.
    7. Philippe Batifoulier, 2014. "De l’aléa moral du patient aux inégalités d’accès aux soins," EconomiX Working Papers 2014-7, University of Paris Nanterre, EconomiX.
    8. David Bardey & Jean‐Charles Rochet, 2010. "Competition Among Health Plans: A Two‐Sided Market Approach," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(2), pages 435-451, June.
    9. Bardey, David & Canta, Chiara & Lozachmeur, Jean-Marie, 2012. "The regulation of health care providers’ payments when horizontal and vertical differentiation matter," Journal of Health Economics, Elsevier, vol. 31(5), pages 691-704.
    10. Yaping Wu & David Bardey & Yijuan Chen & Sanxi Li, 2021. "Health care insurance policies When the provider and patient may collude," Health Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 525-543, March.
    11. Philippe Batifoulier & Nicolas Da Silva, 2014. "The economic behaviour of doctors: medical altruism without an ethic?," EconomiX Working Papers 2014-9, University of Paris Nanterre, EconomiX.
    12. Jasmin Kantarevic & Boris Kralj, 2016. "Physician Payment Contracts in the Presence of Moral Hazard and Adverse Selection: The Theory and Its Application in Ontario," Health Economics, John Wiley & Sons, Ltd., vol. 25(10), pages 1326-1340, October.
    13. Galina Besstremyannaya & Sergei Golovan, 2019. "Physician’s altruism in incentive contracts: Medicare’s quality race," CINCH Working Paper Series 1903, Universitaet Duisburg-Essen, Competent in Competition and Health.
    14. Barigozzi, Francesca & Levaggi, Rosella, 2008. "Emotions in physician agency," Health Policy, Elsevier, vol. 88(1), pages 1-14, October.

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