Medical Insurance Coverage and Health Production Efficiency
Conventional economic theory predicts that medical insurance coverage causes an inefficient production of health because of "ex ante" and "ex post" moral hazard effects. However, no research has empirically examined the magnitude of the inefficiency. This study empirically examines the impact of medical insurance on the technical efficiency of health production at the metropolitan level. The underlying health production function allows for preventive care, curative care, and behavioral factors. Data envelopment analysis determines relative technical efficiency. The multiple regression results indicate that insurance coverage generates inefficiency but the efficiency loss appears to be relatively small on the extensive margin. Copyright (c) The Journal of Risk and Insurance, 2010.
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Volume (Year): 77 (2010)
Issue (Month): 1 ()
Pages: 211-229
| Handle: | RePEc:bla:jrinsu:v:77:y:2010:i:1:p:211-229 |
| Contact details of provider: | Web page: http://www.wiley.com/bw/journal.asp?ref=0022-4367&site=1 Email: More information through EDIRC
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