Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105535
Authors: 
Delipalla, Sophia
O'Donnell, Owen
Year of Publication: 
1999
Series/Report no.: 
Department of Economics Discussion Paper, University of Kent 9911
Abstract: 
Given heterogeneity in incomes and health risks, with asymmetric information in the latter, preferences over the public-private mix in health insurance and care are derived. Results concerning crowding-out in the presence of adverse selection are established. For low-risk individuals, crowding-out depends on risk aversion. A set of such individuals prefers a mixed public-private health care system. A majority-voting equilibrium exists. Under weak assumptions about the income distribution and tax function, both public and private sectors exist in the equilibrium. Comparing information regimes, public provision is more likely to be positive, and will not be lower, under asymmetric information. In the presence of asymmetric information, the equilibrium is more complicated than the "ends-against-the-middle" variety derived elsewhere in the literature.
Subjects: 
Public provision of private goods
health insurance
health care
adverse selection
public choice
JEL: 
D82
H42
H51
H11
Document Type: 
Working Paper

Files in This Item:
File
Size
120.37 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.