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The Theory of Social Health Insurance

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  • Zweifel, Peter

Abstract

The objective of this text is to develop the theory of social health insurance (SHI; the expression used especially in the United States is "public health insurance," which will be viewed as one variant of SHI here). While a good deal is known about the demand and supply of private insurance, the theoretical basis of SHI is much more fragile. Specifically, on the demand side, what are the reasons for social (or public) health insurance to exist, even to dominate private health insurance in most developed countries? With regard to supply, what do we know about the objectives and constraints of SHI managers? Finally, economists can predict properties of the equilibrium characterizing private health insurance (PHI). However, what is the likely outcome ("performance") of SHI? At the normative level, one may ask, Should the balance be shifted from SHI to PHI?

Suggested Citation

  • Zweifel, Peter, 2007. "The Theory of Social Health Insurance," Foundations and Trends(R) in Microeconomics, now publishers, vol. 3(3), pages 183-273, May.
    • Handle: RePEc:now:fntmic:0700000004
    DOI: 10.1561/0700000004
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    Citations

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    Cited by:

    1. Assar Lindbeck & Mats Persson, 2013. "A continuous model of income insurance," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(6), pages 938-960, December.
    2. Indra Kurniawan, Muhammad, 2021. "Has access to health insurance through the Indonesian social security system improved peoples understanding of health issues? Evidence from a national survey," Warwick-Monash Economics Student Papers 14, Warwick Monash Economics Student Papers.
    3. Lindbeck, Assar & Persson, Mats, 2010. "A Continuous Theory of Income Insurance," Working Paper Series 840, Research Institute of Industrial Economics.
    4. Beck, Konstantin & Trottmann, Maria & Zweifel, Peter, 2010. "Risk adjustment in health insurance and its long-term effectiveness," Journal of Health Economics, Elsevier, vol. 29(4), pages 489-498, July.
    5. Eugster, Patrick & Sennhauser, Michèle & Zweifel, Peter, 2010. "Capping risk adjustment?," Journal of Health Economics, Elsevier, vol. 29(4), pages 499-507, July.

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