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Commitment Problems Justify Subsidies For Medical Insurance

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  • GLAZER, A.
  • NISKANEN, E.

Abstract

Consumers who believe that government will provide them with some public medical care, even if they did not purchase medical insurance, may choose to purchase no such insurance. The amount of medical care consumed will then be less than the first-best optimum. Under specified conditions government can then increase the welfare of consumers by subsidizing insurance, or by providing public health care at a more generous level than the minimum it would otherwise give. The Geneva Papers on Risk and Insurance Theory (1992) 17, 137–145. doi:10.1007/BF00962710
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Glazer, A. & Niskanen, E., 1991. "Commitment Problems Justify Subsidies For Medical Insurance," Papers 90-91-11, California Irvine - School of Social Sciences.
    • Handle: RePEc:fth:calirv:90-91-11
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    Cited by:

    1. Vicky Barham & Rose Anne Devlin & Olga Milliken, 2016. "Genetic Health Risks: The Case for Universal Public Health Insurance," Working Papers 1605E, University of Ottawa, Department of Economics.
    2. Glazer, Amihai & Rothenberg, Lawrence S., 1999. "Increased capacity may exacerbate rationing problems: with applications to medical care," Journal of Health Economics, Elsevier, vol. 18(5), pages 669-678, October.

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