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A Dynamic Analysis of the Demand for Health Insurance and Health Care

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Author Info

  • Jonneke Bolhaar

    ()
    (VU University Amsterdam)

  • Maarten Lindeboom

    ()
    (VU University Amsterdam)

  • Bas van der Klaauw

    ()
    (VU University Amsterdam)

Abstract

This discussion paper has led to a publication in 'European Economic Review' , 56(4), 669-90. We investigate the presence of moral hazard and advantageous or adverse selection in a market for supplementary health insurance. For this we specify and estimate dynamic models for health insurance decisions and health care utilization. Estimates of the health care utilization models indicate that moral hazard is not important. Furthermore, we find strong evidence for advantageous selection, largely driven by heterogeneity in education, income and health preferences. Finally, we show that ignoring dynamics and unobserved fixed effects changes the results dramatically.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-084/3.

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Date of creation: 00 0000
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Handle: RePEc:dgr:uvatin:20080084

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Related research

Keywords: supplementary private health insurance; health care utilization; advantageous selection; moral hazard; panel data;

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References

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Citations

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Cited by:
  1. Denise Doiron & Denzil G Fiebig & Agne Suziedelyte, 2013. "Hips and hearts: the variation in incentive effects of insurance across hospital procedures," Discussion Papers 2013-14, School of Economics, The University of New South Wales.
  2. Johar, Meliyanni & Savage, Elizabeth, 2012. "Sources of advantageous selection: Evidence using actual health expenditure risk," Economics Letters, Elsevier, vol. 116(3), pages 579-582.
  3. Jeon, Boyoung & Kwon, Soonman, 2013. "Effect of private health insurance on health care utilization in a universal public insurance system: A case of South Korea," Health Policy, Elsevier, vol. 113(1), pages 69-76.
  4. Valerie Albouy & Laurent Davezies & Thierry Debrand, 2009. "Dynamic Estimation of Health Expenditure: A new approach for simulating individual expenditure," Working Papers DT20, IRDES institut for research and information in health economics, revised Jan 2009.

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