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Health Prevention and Savings: How to deal with Fatalism?

Author

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  • Johanna Etner

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Meglena Jeleva

Abstract

In this paper, we first analyze the trade-off between primary prevention and savings when individuals face health (long-term care) risk. We suppose that there is no private insurance market for this risk and consider two risk management tools: primary prevention and savings. We emphasize the role of risk perception and, more precisely, we focus our discussion on the existence of a type of individuals that we call fatalists. Secondly, we analyze the role of risk perception on long-term care public policy. We propose to combine subsidies for prevention with a social insurance co-payment for long-term care expenditures. We show that the presence of fatalists is crucial in the optimal policy design.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Johanna Etner & Meglena Jeleva, 2016. "Health Prevention and Savings: How to deal with Fatalism?," Post-Print hal-01386016, HAL.
    • Handle: RePEc:hal:journl:hal-01386016
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    Cited by:

    1. Éric Langlais, 2010. "Les criminels aiment-ils le risque ?," Revue économique, Presses de Sciences-Po, vol. 61(2), pages 263-280.
    2. Richard Peter, 2024. "The economics of self-protection," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 49(1), pages 6-35, March.

    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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