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Self Selection and Moral Hazard in Chilean Health Insurance

Author

Listed:
  • Claudio Sapelli

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

  • Bernardita Vial

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

Abstract

In Chile, dependant workers are mandated to purchase health insurance and they can chose between one public provider and several private providers. Here, we analyze the relation between utilization and the choice of either private or public insurance. Independent workers, however, are not mandated. In this case, we analyze the relationship between utilization and the decision to purchase insurance. The results show adverse selection against insurance companies for independent workers and against FONASA for dependant workers. Moral hazard is negligible in the case of hospitalization. Regarding medical visits, over consumption is quantitatively important and statistically significant in all cases (against insurance for independents; against public and private insurance in the case of dependant workers).

Suggested Citation

  • Claudio Sapelli & Bernardita Vial, 2001. "Self Selection and Moral Hazard in Chilean Health Insurance," Documentos de Trabajo 195, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:195
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    File URL: https://www.economia.uc.cl/docs/doctra/dt-195.pdf
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    References listed on IDEAS

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    1. A. C. Cameron & P. K. Trivedi & Frank Milne & J. Piggott, 1988. "A Microeconometric Model of the Demand for Health Care and Health Insurance in Australia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(1), pages 85-106.
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    4. Cutler David M. & Zeckhauser Richard J., 1998. "Adverse Selection in Health Insurance," Forum for Health Economics & Policy, De Gruyter, vol. 1(1), pages 1-33, January.
    5. Claudio Sapelli & Arístides Torche, 1998. "El Seguro Previsional de Salud: Determinantes de la Elección entre Seguro Público y Privado, 1990-1994," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 35(106), pages 383-406.
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    Keywords

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    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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