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Private insurance subsidies and public health care markets: evidence from Canada

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Author Info
Mark Stabile

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Abstract

In this study I examine the effects of government subsidies to employer-provided health insurance on the decision to purchase insurance, and on utilization of publicly funded health services. Using unique variation in tax subsidies across Canadian provinces as an instrument, I estimate the effects of these subsidies on the demand for supplemental health insurance and their extended effects on the decision to use publicly-funded health services. My results show that government subsidies through tax exemptions have significant effects on the decision to purchase insurance. Furthermore, additional insurance policies lead to moral hazard in the use of publicly funded health services.

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File URL: http://economics.ca/cgi/xms?jab=v34n4/05.pdf
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File Function: Full text
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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 34 (2001)
Issue (Month): 4 (November)
Pages: 921-942
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:cje:issued:v:34:y:2001:i:4:p:921-942

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office CIREQ-C.R.D.E., Université de Montréal C.P. 6128, succursale Centre-ville Montréal, Québec, H3C 3J7, Canada
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Related research
Keywords:

Find related papers by JEL classification:
H2 - Public Economics - - Taxation, Subsidies, and Revenue
H4 - Public Economics - - Publicly Provided Goods
I1 - Health, Education, and Welfare - - Health

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Marcelin Joanis & David Boisclair & Claude Montmarquette, 2004. "La santé au Québec : des options pour financer la croissance," CIRANO Project Reports 2004rp-04, CIRANO. [Downloadable!]
  2. Hurley, Jeremiah & Vaithianathan, Rhema & Crossley, Thomas F. & Cobb-Clark, Deborah, 2002. "Parallel Private Health Insurance in Australia: A Cautionary Tale and Lessons for Canada," IZA Discussion Papers 515, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Craig William Perry & Harvey S. Rosen, 2001. "Insurance and the Utilization of Medical Services Among the Self-Employed," NBER Working Papers 8490, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Bolhaar, Jonneke & Lindeboom, Maarten & van der Klaauw, Bas, 2008. "A Dynamic Analysis of the Demand for Health Insurance and Health Care," IZA Discussion Papers 3698, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Gillian Mulvale & Jeremiah Hurley, 2007. "Insurance Coverage and the Treatment of Mental Illness: Effect on Medication and Provider Use in Canada," Centre for Health Economics and Policy Analysis Working Paper Series 07-06, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada. [Downloadable!]
  6. Jonneke Bolhaar & Maarten Lindeboom & Bas van der Klaauw, . "A Dynamic Analysis of the Demand for Health Insurance and Health Care," Tinbergen Institute Discussion Papers 08-084/3, Tinbergen Institute. [Downloadable!]
  7. Lori J. Curtis & William J. MacMinn, 2007. "Health-Care Utilization in Canada: 25 Years of Evidence," Social and Economic Dimensions of an Aging Population Research Papers 190, McMaster University. [Downloadable!]
  8. Sisira Sarma & Wayne Simpson, 2006. "A microeconometric analysis of Canadian health care utilization," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 219-239. [Downloadable!]
  9. Sherry A. Glied, 2008. "Universal Public Health Insurance and Private Coverage: Externalities in Health Care Consumption," NBER Working Papers 13885, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2008-9-30.

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