IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0231.html
   My bibliography  Save this paper

Properties of actuarially-fair and pay-as-you-go health insurance schemes for the elderly. An OLG model approach

Author

Listed:
  • Johansson, Per-Olov

    (Dept. of Economics, Stockholm School of Economics)

Abstract

The aged dependency ratio or ADR is growing at a fast pace in many countries. This fact causes stress to the economy and might create conflicts of interest between young and old. In this paper the properties of different health insurance systems for the elderly are analysed within an overlapping generations (OLG) model. The properties of actuarial health insurance and different variations of pay-as-you-go health insurance are compared. It turns out that the welfare properties of these contracts are heavily dependent on the economy's dynamic properties. Of particular importance is the magnitude of the rate of population growth relative to the interest rate. In addition it is shown that public health insurance is associated with an inherent externality resulting in a second-best solution.

Suggested Citation

  • Johansson, Per-Olov, 1998. "Properties of actuarially-fair and pay-as-you-go health insurance schemes for the elderly. An OLG model approach," SSE/EFI Working Paper Series in Economics and Finance 231, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0231
    as

    Download full text from publisher

    File URL: http://swopec.hhs.se/hastef/papers/hastef0231.pdf.zip
    File Function: Complete Rendering
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0231.pdf
    File Function: Complete Rendering
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0231.ps.zip
    File Function: Complete Rendering
    Download Restriction: no
    File URL: http://swopec.hhs.se/hastef/papers/hastef0231.ps
    File Function: Complete Rendering
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    health insurance; optimal insurance; government insurance; PAYG insurance; OLG models;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helena Lundin (email available below). General contact details of provider: https://edirc.repec.org/data/erhhsse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.