Advanced Search
MyIDEAS: Login to save this paper or follow this series

Ex-ante Moral Hazard and Primary Prevention, evidence from Portugal

Contents:

Author Info

  • Aida Isabel Tavares

    ()
    (Departamento de Economia e Gestão Industrial, GOVCOPP, Universidade de Aveiro)

  • Pedro Pita Barros

    ()
    (Economics Faculty of Universidade Nova de Lisboa - Portugal, and CEPR (London))

Abstract

This 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 Info

If 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.
File URL: https://www.ua.pt/egi/ReadObject.aspx?obj=19386
Download Restriction: no

Bibliographic Info

Paper 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.

as in new window
Length: 32 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:ave:wpaper:562011

Contact details of provider:
Postal: Campus Universitario de Santiago, 3810-193 Aveiro
Phone: +351 234 370 361
Fax: +351 234 370 215
Email:
Web page: http://www.ua.pt/egi/
More information through EDIRC

Related research

Keywords: ex-ante moral hazard; prevention; lifestyles;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. 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.
  2. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. de Preux, L, 2010. "Ex Ante Moral Hazard and Anticipatory Behaviour: Some Evidence," Health, Econometrics and Data Group (HEDG) Working Papers 10/13, HEDG, c/o Department of Economics, University of York.
  13. 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.
  14. 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..
  15. 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.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ave:wpaper:562011. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marta Ferreira Dias).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.