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Prevention of diseases and preventive co-payment rate

Author

Listed:
  • François Maréchal

    (CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

Abstract

In this paper, we use the Rank-Dependent Expected-Utility (RDEU) model to analyse the preventive behaviour of an individual faced with the risk of being sick. The RDEU model makes it possible to take into account the way economic agents perceive the risk of being sick in the future. We first exhibit the condition under which the level of prevention chosen by the agent is higher or lower than the first best level. Then, we determine the optimal level of preventive co-payment rate which implements the first best level of prevention.

Suggested Citation

  • François Maréchal, 2009. "Prevention of diseases and preventive co-payment rate," Post-Print hal-00485049, HAL.
    • Handle: RePEc:hal:journl:hal-00485049
    as

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