Johannesson, Magnus () (Dept. of Economics, Stockholm School of Economics) Johansson, Per-Olov () (Dept. of Economics, Stockholm School of Economics) Söderqvist, Tore (The Beijer Institute)
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In this paper, we develop a simple model of the benefits and costs of being on a waiting list. The model shows that complex factors are in operation, implying that a shorter waiting time need not necessarily be preferred to a longer waiting time. We also present an empirical study, where a sample of Swedes are offered the possibility of purchasing private insurance, thus reducing waiting time for surgery beyond the three-month guarantee offered by the public sector health care system. Respondents could choose between two insurance contracts. A 'spike' model, where the probability of a zero WTP is strictly positive, was developed and estimated to obtain demand functions for private insurance.
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Length: 28 pages Date of creation: 05 Sep 1997 Date of revision: Publication status: Published in Journal of Health Economics, 1998, pages 627-644. Handle: RePEc:hhs:hastef:0192
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Find related papers by JEL classification: D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis I10 - Health, Education, and Welfare - - Health - - - General I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
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