The Effect Of Tax Preferences On Health Spending
In this paper, we estimate the effect of the tax preference for health insurance on health care spending using data from the Medical Expenditure Panel Surveys from 1996–2005. We use the fact that Social Security taxes are only levied on earnings below a statutory threshold to identify the impact of the tax preference. Because employer-sponsored health insurance premiums are excluded from Social Security payroll taxes, workers who earn just below the Social Security tax threshold receive a larger tax preference for health insurance than workers who earn just above it. We find a significant effect of the tax preference, consistent with previous research.
Volume (Year): 64 (2011)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: 725 15th St. NW #600. Washington, D.C. 20005-2109|
Fax: (202) 737-7308
Web page: http://www.ntanet.org/
More information through EDIRC
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.:
- Jack, William & Levinson, Arik & Rahardja, Sjamsu, 2006.
"Employee cost-sharing and the welfare effects of flexible spending accounts,"
Journal of Public Economics,
Elsevier, vol. 90(12), pages 2285-2301, December.
- William Jack (Georgetown University), Arik Levinson (Georgetown University), and Sjamsu Rahardja (World Bank), 2005. "Employee cost-sharing and the welfare effects of Flexible Spending Accounts," Working Papers gueconwpa~05-05-12, Georgetown University, Department of Economics.
- William Jack & Arik Levinson & Sjamsu Rahardja, 2005. "Employee Cost-Sharing and the Welfare Effects of Flexible Spending Accounts," NBER Working Papers 11315, National Bureau of Economic Research, Inc.
- Manning, Willard G, et al, 1987. "Health Insurance and the Demand for Medical Care: Evidence from a Randomized Experiment," American Economic Review, American Economic Association, vol. 77(3), pages 251-77, June.
- Gruber, Jonathan & Washington, Ebonya, 2005. "Subsidies to employee health insurance premiums and the health insurance market," Journal of Health Economics, Elsevier, vol. 24(2), pages 253-276, March.
- Feldstein, Martin & Friedman, Bernard, 1977. "Tax subsidies, the rational demand for insurance and the health care crisis," Journal of Public Economics, Elsevier, vol. 7(2), pages 155-178, April.
- Kate Bundorf, M., 2002. "Employee demand for health insurance and employer health plan choices," Journal of Health Economics, Elsevier, vol. 21(1), pages 65-88, January.
- Amy Finkelstein, 2007. "The Aggregate Effects of Health Insurance: Evidence from the Introduction of Medicare," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 1-37.
- Eichner, Matthew J, 1998. "The Demand for Medical Care: What People Pay Does Matter," American Economic Review, American Economic Association, vol. 88(2), pages 117-21, May.
- Gruber, Jonathan & Lettau, Michael, 2004. "How elastic is the firm's demand for health insurance?," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1273-1293, July.
When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:64:y:2011:i:3:p:795-816. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright)
If references are entirely missing, you can add them using this form.