The Recipient Value and Distributional Impact of the Commonwealth Seniors Health Card in 2007
This paper considers the recipient value and distributional impact of the Commonwealth Seniors Health Card (CSHC) by analysing a range of possible behavioural responses to economic incentives. First, I estimate the recipient value by considering the trade-off between moral hazard and risk pooling. The utility gain through risk-pooling is found to be negligible. The deadweight loss through moral hazard may be considerable. I also use illustrative models to demonstrate the possible effects of the CSHC on savings and labour supply. Whilst the CSHC may induce some people to save and work more, it may have the opposite effect on others.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:uow:depec1:wp08-04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Siminski)
If references are entirely missing, you can add them using this form.