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Self Selection and Moral Hazard in Chilean Health Insurance

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Author Info
Claudio Sapelli () (Instituto de Economía. Pontificia Universidad Católica de Chile.)
Bernardita Vial () (Instituto de Economía. Pontificia Universidad Católica de Chile.)

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Abstract

In Chile, dependant workers are mandated to purchase health insurance and they can chose between one public provider and several private providers. Here, we analyze the relation between utilization and the choice of either private or public insurance. Independent workers, however, are not mandated. In this case, we analyze the relationship between utilization and the decision to purchase insurance. The results show adverse selection against insurance companies for independent workers and against FONASA for dependant workers. Moral hazard is negligible in the case of hospitalization. Regarding medical visits, over consumption is quantitatively important and statistically significant in all cases (against insurance for independents; against public and private insurance in the case of dependant workers).

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Publisher Info
Paper provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its series Documentos de Trabajo with number 195.

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Date of creation: 2001
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Publication status: Published as "Self Selection and Moral Hazard in Chilean Health Insurance", Journal of Health Economics, Volume 22, Issue 3, May 2003, pp. 459-476.
Handle: RePEc:ioe:doctra:195

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Related research
Keywords: Insurance moral hazard adverse selection self selection count data models.

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Find related papers by JEL classification:
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies

Cited by:
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  1. Wagstaff, Adam & Pradhan, Menno, 2005. "Health insurance impacts on health and nonmedical consumption in a developing country," Policy Research Working Paper Series 3563, The World Bank. [Downloadable!]
  2. Grönqvist, Erik, 2004. "Information Updating and Insurance Dropout: Evidence from Dental Insurance," Working Paper Series in Economics and Finance 576, Stockholm School of Economics. [Downloadable!]
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