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The Aggregate Demand for Private Health Insurance Coverage in the United States

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  • Francis W. Ahking
  • Carmelo Giaccotto
  • Rexford E. Santerre

Abstract

This article estimates the aggregate demand for private health insurance coverage in the United States using an error correction model for the period 1966–1999. Both short‐ and long‐run price and income elasticities of demand are estimated. The empirical findings indicate that both private insurance enrollment and the completeness of insurance are relatively inelastic with respect to changes in price and income in the short and long run. Moreover, the results suggest that an increase in the number cyclically and frictionally uninsured generates less welfare loss than an increase in the number of structurally uninsured.

Suggested Citation

  • Francis W. Ahking & Carmelo Giaccotto & Rexford E. Santerre, 2009. "The Aggregate Demand for Private Health Insurance Coverage in the United States," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(1), pages 133-157, March.
    • Handle: RePEc:bla:jrinsu:v:76:y:2009:i:1:p:133-157
    DOI: 10.1111/j.1539-6975.2009.01290.x
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    1. Richard Dusansky & Çağatay Koç, 2010. "Implications of the Interaction Between Insurance Choice and Medical Care Demand," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(1), pages 129-144, March.

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