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Health-Risking Informal Service: Price, Prevalence and Law Enforcement

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Author Info
Levy, Amnon () (University of Wollongong)

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Abstract

The health-risking informal service is transacted when the expected extra satisfaction rate exceeds the ratio of the expected extra cost to the formal service price. Its prevalence decreases with the costs of risk bearing for the providers and clients. Law-enforcement effort lowers (raises) the informal service equilibrium price when the ratio of the providers' and the clients' degrees of absolute risk aversion is greater (smaller) than the ratio of the law-enforcement elasticities of their cost bearing. Spending on law enforcement is efficient when the public cost of the expected chain-infection stemming from the informal service exceeds a threshold level.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012196.pdf
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Publisher Info
Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp05-13.

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Length: 17 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:uow:depec1:wp05-13

Contact details of provider:
Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3663
Fax: +612 4221-3725
Web page: http://www.uow.edu.au/commerce/econ/
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Related research
Keywords: Unsafe sex service; risk bearing; sexually transmitted diseases; public costs; law enforcement;

Find related papers by JEL classification:
I19 - Health, Education, and Welfare - - Health - - - Other
K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law

This paper has been announced in the following NEP Reports:

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.:
  1. Levy, Amnon, 2002. "A lifetime portfolio of risky and risk-free sexual behaviour and the prevalence of AIDS," Journal of Health Economics, Elsevier, vol. 21(6), pages 993-1007, November. [Downloadable!] (restricted)
    Other versions:
  2. Levy, Amnon, 1992. "An Analysis of the Potential Externalities Affecting the Borrowing Behaviour of Developing Countries," Australian Economic Papers, Blackwell Publishing, vol. 31(58), pages 164-76, June.
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This page was last updated on 2009-12-13.

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