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Elasticities of market shares and social health insurance choice in germany: a dynamic panel data approach

Author

Listed:
  • Marcus Tamm
  • Harald Tauchmann

    (RWI Essen, Essen, Germany)

  • Jürgen Wasem

    (Institute of Health Care Management, University of Duisburg|Essen, Essen, Germany)

  • Stefan Greß

    (Institute of Health Care Management, University of Duisburg|Essen, Essen, Germany)

Abstract

In 1996, free choice of health insurers was introduced to the German social health insurance system. One objective was to increase efficiency through competition. A crucial precondition for effective competition among health insurers is that consumers search for lower-priced health insurers. We test this hypothesis by estimating the price elasticities of insurers' market shares. We use unique panel data and specify a dynamic panel model to explain changes in market shares. Estimation results suggest that short-run price elasticities are smaller than previously found by other studies. In the long-run, however, estimation results suggest substantial price effects. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Marcus Tamm & Harald Tauchmann & Jürgen Wasem & Stefan Greß, 2007. "Elasticities of market shares and social health insurance choice in germany: a dynamic panel data approach," Health Economics, John Wiley & Sons, Ltd., vol. 16(3), pages 243-256.
  • Handle: RePEc:wly:hlthec:v:16:y:2007:i:3:p:243-256
    DOI: 10.1002/hec.1167
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    References listed on IDEAS

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