The Effects of uncertainty on the demand for health insurance

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Título: The Effects of uncertainty on the demand for health insurance / Çagatay Koç

Notas: This article analyzes the effects of uncertainty and increases in risk aversion on the demand for health insurance using a theorical model that highlights the interdependence between insurance and health care demand decisions. Two types of uncertainty in the consumer's pretreatment heath care. Comparative statics results are reported indicating the impact on the demand for insurance of shifts in the distributions of pretreatment health and productivity of healt care in the form of first-order stochastic dominance, Rothschild- Stiglitz mean-preserving spreads, and second-order stochastic dominance. The demand for insurance increases in the distribution of the pretreatment heatlth provided that the health production function is in a special class and the price elasticity on the health care is nondecreasing in the pretreatment health. Provided also that the demand of health care is own-price inelastic, the same conclusion is obtained when the uncertainty is about the productivity of health care

Registros relacionados: En: The Journal of risk and insurance. - Orlando. - Volume 71, number 1, March 2004 ; p. 41-61

Títulos secundarios: Título: The Journal of risk and insurance

Otras clasificaciones: 6

Derechos: In Copyright (InC): http://rightsstatements.org/vocab/InC/1.0/