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Evidence About The Moral Hazard In The Ecuadorian Health System

Author

Listed:
  • Mercy Raquel Orellana Bravo

    (University of Cuenca; Research Group in Regional Economics)

  • Juan Andrés Piedra Peña

    (University of Cuenca; Research Group in Regional Economics)

  • Luis Santiago Sarmiento Moscoso

    (University of Cuenca; Research Group in Regional Economics)

Abstract

The aim of this study is to estimate the presence of moral hazard in the Ecuadorian health system, understood as an over-utilization of it. For this, a binomial logit model, which measures the probability of use of health services between insured and uninsured people is used. The results show evidence of moral hazard for individuals who are insured, mainly for adults over 60 years. In addition, it is noted that when having extra expenses that are not covered by insurance, insured people tend to reduce the use of medical services.

Suggested Citation

  • Mercy Raquel Orellana Bravo & Juan Andrés Piedra Peña & Luis Santiago Sarmiento Moscoso, 2017. "Evidence About The Moral Hazard In The Ecuadorian Health System," Journal of Smart Economic Growth, , vol. 2(1), pages 109-132, March.
    • Handle: RePEc:seg:012016:v:1:y:2017:i:2:p:109-132
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    References listed on IDEAS

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    Cited by:

    1. Juan Piedra-Peña & Diego Prior, 2023. "Analyzing the effect of health reforms on the efficiency of Ecuadorian public hospitals," International Journal of Health Economics and Management, Springer, vol. 23(3), pages 361-392, September.

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    More about this item

    Keywords

    Moral Hazard; asymmetric information; health insurance; health system; health services;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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