Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65669
Authors: 
Kifmann, Mathias
Roeder, Kerstin
Year of Publication: 
2011
Series/Report no.: 
HCHE Research Paper 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

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