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Fragility: A Quantitative Analysis of the US Health Insurance System

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  • Iourii Manovskii

    (University of Pennsylvania)

  • Bjoern Bruegemann

    (Yale University)

Abstract

We develop a quantitative equilibrium model that features tax deductibility of employer-provided coverage, non-discrimination restrictions, fixed costs of coverage and employers that hire discrete numbers of workers in frictional labor markets. We use the calibrated model to understand what drives the patterns of insurance provision with employer size and to evaluate the effects of this system on the flows of workers across health insurance coverage status, labor market flows, as well as on the size distribution of establishments, and aggregate productivity. We also evaluate the effects of various proposed reforms of the system.

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 787.

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Date of creation: 2010
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Handle: RePEc:red:sed010:787

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  1. Marcus Hagedorn & Iourii Manovskii, 2008. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited," American Economic Review, American Economic Association, vol. 98(4), pages 1692-1706, September.
  2. Thomasson, Melissa A., 2002. "From Sickness to Health: The Twentieth-Century Development of U.S. Health Insurance," Explorations in Economic History, Elsevier, vol. 39(3), pages 233-253, July.
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Cited by:
  1. Pashchenko, Svetlana & Porapakkarm, Ponpoje, 2010. "Quantitative Analysis of Health Insurance Reform: Separating Community Rating from Income Redistribution," MPRA Paper 26158, University Library of Munich, Germany.
  2. Cole, Harold & Kim, Soojin & Krueger, Dirk, 2012. "Analyzing the Effects of Insuring Health Risks: On the Trade-off between Short Run Insurance Benefits vs. Long Run Incentive Costs," CEPR Discussion Papers 9239, C.E.P.R. Discussion Papers.
  3. Pashchenko, Svetlana & Porapakkarm, Ponpoje, 2012. "Quantitative analysis of health insurance reform: separating regulation from redistribution," MPRA Paper 41193, University Library of Munich, Germany.
  4. Soojin Kim & Dirk Krueger & Harold Cole, 2012. "Analyzing the Effects of Insuring Away Health Risks," 2012 Meeting Papers 609, Society for Economic Dynamics.
  5. Dizioli, Allan & Pinheiro, Roberto B., 2012. "Health insurance as a productive factor," MPRA Paper 39743, University Library of Munich, Germany.
  6. Naoki Aizawa & Hanming Fang, 2013. "Equilibrium Labor Market Search and Health Insurance Reform," PIER Working Paper Archive 13-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  7. Svetlana Pashchenko & Ponpoje Porapakkarm, 2012. "Online Appendix to "Quantitative Analysis of Health Insurance Reform: Separating Regulation from Redistribution"," Technical Appendices 11-70, Review of Economic Dynamics.
  8. Rong Hai, 2013. "The Determinants of Rising Inequality in Health Insurance and Wages, Second Version," PIER Working Paper Archive 13-071, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 21 Dec 2013.
  9. Rong Hai, 2013. "The Determinants of Rising Inequality in Health Insurance and Wages: An Equilibrium Model of Workers' Compensation and Health Care Policies," PIER Working Paper Archive 13-019, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.

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