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Hamburg Center for Health Economics (hche), Universität Hamburg >
hche Research Papers, Hamburg Center for Health Economics, Universität Hamburg >
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http://hdl.handle.net/10419/65669
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| Title: | | Premium subsidies and social insurance: Substitutes or complements?  |
| Authors: | | Kifmann, Mathias Roeder, Kerstin |
| Issue Date: | | 2011 |
| Series/Report no.: | | hche Research Paper, Hamburg Center for Health Economics 2011/01 |
| Abstract: | | Premium subsidies have been advocated as an alternative to social health insurance. These subsidies are paid if expenditure on health insurance exceeds a given share of income. In this paper, we examine whether this approach is superior to social insurance from a welfare perspective. We show that the results crucially depend on the correlation of health and productivity. For a positive correlation, we find that combining premium subsidies with social insurance is the optimal policy. |
| Subjects: | | social insurance health insurance redistributive taxation equity |
| JEL: | | H21 H51 I18 |
| Document Type: | | Working Paper |
| Appears in Collections: | | hche Research Papers, Hamburg Center for Health Economics, Universität Hamburg
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