Ex-ante Moral Hazard and Primary Prevention, evidence from Portugal
AbstractThis paper provides evidence on ex-ante moral hazard in Portugal. The issue is addressed in a setting where people buy voluntary private health insurance, on top of existing Government coverage. We identify the main factors that lead people to adopt healthy lifestyles, such as taking up sports and not smoking, which are associated with primary prevention. Moreover, it allows for an inference of the role of risk aversion of individuals in these decisions. We use a GHK recursive simulator of multivariate probit for insurance demand, smoking and sporting decisions, to provide joint estimates taking into consideration potential endogeneity of these decisions. Our results indicate that there is some evidence of ex-ante moral hazard with respect to primary prevention behaviors. Di¤erences in risk aversion across individuals do not seem to play a primary role in explaining distinct life styles.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro in its series Working Papers de Economia (Economics Working Papers) with number 56.
Length: 32 pages
Date of creation: Jul 2011
Date of revision:
ex-ante moral hazard; prevention; lifestyles;
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-27 (All new papers)
- NEP-CTA-2011-07-27 (Contract Theory & Applications)
- NEP-HEA-2011-07-27 (Health Economics)
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.:
- Christophe Courbage & Augustin de Coulon, 2004. "Prevention and Private Health Insurance in the U.K," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 29(4), pages 719-727, October.
- Colm Harmon & Brian Nolan, 2001. "Health insurance and health services utilization in Ireland," Health Economics, John Wiley & Sons, Ltd., vol. 10(2), pages 135-145.
- William H. Greene, 1998. "Gender Economics Courses in Liberal Arts Colleges: Further Results," The Journal of Economic Education, Taylor & Francis Journals, vol. 29(4), pages 291-300, January.
- Besley, Timothy & Hall, John & Preston, Ian, 1998. "Private and public health insurance in the UK," European Economic Review, Elsevier, vol. 42(3-5), pages 491-497, May.
- Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-48, July-Aug..
- Lorenzo Cappellari & Stephen P. Jenkins, 2003.
"Multivariate probit regression using simulated maximum likelihood,"
United Kingdom Stata Users' Group Meetings 2003
10, Stata Users Group.
- Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
- Viscusi, W Kip, et al, 2000. " Smoking Risks in Spain: Part III--Determinants of Smoking Behavior," Journal of Risk and Uncertainty, Springer, vol. 21(2-3), pages 213-34, November.
- Barros, Pedro Pita & Machado, Matilde P. & Sanz-de-Galdeano, Anna, 2008.
"Moral hazard and the demand for health services: A matching estimator approach,"
Journal of Health Economics,
Elsevier, vol. 27(4), pages 1006-1025, July.
- Machado, Matilde Pinto & Pita Barros, Pedro Luis & Sanz-de-Galdeano, Anna, 2006. "Moral Hazard and the Demand for Health Services: A Matching Estimator Approach," CEPR Discussion Papers 5488, C.E.P.R. Discussion Papers.
- Pedro Pita Barros & Matilde P. Machado & Anna Sanz de Galdeano, 2005. "Moral Hazard And The Demand For Health Services: A Matching Estimator Approach," Economics Working Papers we055928, Universidad Carlos III, Departamento de Economía.
- Dhaval Dave & Robert Kaestner, 2009.
"Health insurance and ex ante moral hazard: evidence from Medicare,"
International Journal of Health Care Finance and Economics,
Springer, vol. 9(4), pages 367-390, December.
- Dhaval Dave & Robert Kaestner, 2006. "Health Insurance and Ex Ante Moral Hazard: Evidence from Medicare," NBER Working Papers 12764, National Bureau of Economic Research, Inc.
- Brad R. Humphreys & Jane E. Ruseski, 2006.
"Economic Determinants of Participation in Physical Activity and Sport,"
0613, International Association of Sports Economists & North American Association of Sports Economists.
- Brad R. Humphreys & Jane E. Ruseski, 2006. "Economic Determinants of Participation in Physical Activity and Sport," IASE Conference Papers 0619, International Association of Sports Economists.
- Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
- Lisa Farrell & Michael A. Shields, 2002. "Investigating the economic and demographic determinants of sporting participation in England," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(2), pages 335-348.
- Christophe Courbage & Augustin de Coulon, 2004. "Prevention and Private Health Insurance in the U.K," The Geneva Papers on Risk and Insurance, The International Association for the Study of Insurance Economics, vol. 29(4), pages 719-727, October.
- Y. Machnes, 2006. "The demand for private health care under national health insurance," The European Journal of Health Economics, Springer, vol. 7(4), pages 265-269, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marta Ferreira Dias).
If references are entirely missing, you can add them using this form.