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Risk aversion, moral hazard, and gender differences in health care utilization

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  • Yan Zheng

    (JP Morgan Chase & Co.)

  • Tomislav Vukina

    (North Carolina State University)

  • Xiaoyong Zheng

    (North Carolina State University)

Abstract

This paper uses truncated count model with endogeneity and simulated maximum likelihood estimation technique to estimate gender differences in moral hazard in health care insurance. We use the dataset that consists of invoices for all outpatient services from a regional hospital in Croatia. Our theoretical model predicts that higher risk aversion is associated with smaller ex-post moral hazard effect. If women are more risk averse than men, then the moral hazard effect due to health insurance should be lower in women than in men. After adjusting for the sample selection in the estimation, we found a statistically significant evidence of moral hazard for the general population but statistically insignificant difference in moral hazard between men and women.

Suggested Citation

  • Yan Zheng & Tomislav Vukina & Xiaoyong Zheng, 2021. "Risk aversion, moral hazard, and gender differences in health care utilization," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 46(1), pages 35-60, March.
    • Handle: RePEc:pal:genrir:v:46:y:2021:i:1:d:10.1057_s10713-020-00048-x
    DOI: 10.1057/s10713-020-00048-x
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    1. Kurt Lavetti & Thomas DeLeire & Nicolas R. Ziebarth, 2023. "How do low‐income enrollees in the Affordable Care Act marketplaces respond to cost‐sharing?," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 90(1), pages 155-183, March.

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    More about this item

    Keywords

    Health care demand; Insurance; Asymmetric information; Truncated count model;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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