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Commitment Problems Justify Subsidies For Medical Insurance

  • GLAZER, A.
  • NISKANEN, E.

Consumers who believe that government will provide them with some public medical care, even if they did not purchase medical insurance, may choose to purchase no such insurance. The amount of medical care consumed will then be less than the first-best optimum. Under specified conditions government can then increase the welfare of consumers by subsidizing insurance, or by providing public health care at a more generous level than the minimum it would otherwise give. The Geneva Papers on Risk and Insurance Theory (1992) 17, 137–145. doi:10.1007/BF00962710

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Paper provided by California Irvine - School of Social Sciences in its series Papers with number 90-91-11.

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Length: 13 pages
Date of creation: 1991
Date of revision:
Handle: RePEc:fth:calirv:90-91-11
Contact details of provider: Postal: UNIVERSITY OF CALIFORNIA IRVINE, SCHOOL OF SOCIAL SCIENCES, IRVINECALIFORNIA 91717 U.S.A.

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