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The Recipient Value and Distributional Impact of the Commonwealth Seniors Health Card in 2007

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Author Info
Siminski, Peter () (University of Wollongong)
Abstract

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.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow042465.pdf
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Publisher Info
Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp08-04.

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Length: 42 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:uow:depec1:wp08-04

Contact details of provider:
Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3663
Fax: +612 4221-3725
Web page: http://www.uow.edu.au/commerce/econ/
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Related research
Keywords: distributional impact; health insurance; recipient value; Australia; retirement ;

Find related papers by JEL classification:
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving

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This page was last updated on 2009-10-25.

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