Medical Insurance Coverage and Health Production Efficiency
AbstractConventional economic theory predicts that medical insurance coverage causes an inefficient production of health because of "ex ante" and "ex post" moral hazard effects. However, no research has empirically examined the magnitude of the inefficiency. This study empirically examines the impact of medical insurance on the technical efficiency of health production at the metropolitan level. The underlying health production function allows for preventive care, curative care, and behavioral factors. Data envelopment analysis determines relative technical efficiency. The multiple regression results indicate that insurance coverage generates inefficiency but the efficiency loss appears to be relatively small on the extensive margin. Copyright (c) The Journal of Risk and Insurance, 2010.
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Bibliographic InfoArticle provided by The American Risk and Insurance Association in its journal Journal of Risk and Insurance.
Volume (Year): 77 (2010)
Issue (Month): 1 ()
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Web page: http://www.wiley.com/bw/journal.asp?ref=0022-4367&site=1
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- Kankana Mukherjee & Rexford Santerre & Ning Jackie Zhang, 2010. "Explaining the efficiency of local health departments in the U.S.: an exploratory analysis," Health Care Management Science, Springer, vol. 13(4), pages 378-387, December.
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