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The Recipient Value and Distributional Impact of the Commonwealth Seniors Health Card in 2007

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Abstract

This paper considers the recipient value and distributional impact of the Commonwealth Seniors Health Card (CSHC) by analysing a range of possible behavioural responses to economic incentives. First, I estimate the recipient value by considering the trade-off between moral hazard and risk pooling. The utility gain through risk-pooling is found to be negligible. The deadweight loss through moral hazard may be considerable. I also use illustrative models to demonstrate the possible effects of the CSHC on savings and labour supply. Whilst the CSHC may induce some people to save and work more, it may have the opposite effect on others.

Suggested Citation

  • Siminski, Peter, 2008. "The Recipient Value and Distributional Impact of the Commonwealth Seniors Health Card in 2007," Economics Working Papers wp08-04, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp08-04
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    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow042465.pdf
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    Cited by:

    1. Peter Siminski, 2009. "A Welfare Analysis of the Commonwealth Seniors Health Card," The Economic Record, The Economic Society of Australia, vol. 85(269), pages 164-180, June.

    More about this item

    Keywords

    distributional impact; health insurance; recipient value; Australia; retirement;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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