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On equity in health and health care consumption: the role of moral hazard

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  • Guido Citoni

Abstract

In the paper I criticize the neglect by the theory of equality of opportunities of the issue of ex-post moral hazard. I discuss of the three components of ex-post moral hazard: the first is the usual overconsumption due to a low or zero price, the second is a psychological component, leading to increased consumption if the illness was not generated by ex-ante moral hazard, and the third is the wrong/excess consumption due to the desire of reducing the time cost of services use.I illustrate the bias implicit in the theory of equality of opportunities due to the omission of ex-post moral-hazard and I show that stigmatizing ex-ante moral-hazard without doing the same for ex-post moral hazard is unfair.

Suggested Citation

  • Guido Citoni, 2015. "On equity in health and health care consumption: the role of moral hazard," Working Papers CEB 15-042, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:sol:wpaper:2013/218512
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    References listed on IDEAS

    as
    1. Florence Jusot & Sandy Tubeuf & Alain Trannoy, 2010. "Effort or Circumstances: Does the Correlation Matter for Inequality of Opportunity in Health?," Working Papers DT33, IRDES institut for research and information in health economics, revised Jul 2010.
    2. Florence Jusot & Sandy Tubeuf & Alain Trannoy, 2013. "Circumstances And Efforts: How Important Is Their Correlation For The Measurement Of Inequality Of Opportunity In Health?," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1470-1495, December.
    3. Hatzenbuehler, M.L. & Phelan, J.C. & Link, B.G., 2013. "Stigma as a fundamental cause of population health inequalities," American Journal of Public Health, American Public Health Association, vol. 103(5), pages 813-821.
    4. Guido Citoni, 2015. "On the inverse relationship between ex-ante and ex-post moral hazard: the case of smokers," Working Papers CEB 15-041, ULB -- Universite Libre de Bruxelles.
    5. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    6. Fleurbaey, Marc & Schokkaert, Erik, 2009. "Unfair inequalities in health and health care," Journal of Health Economics, Elsevier, vol. 28(1), pages 73-90, January.
    7. repec:dau:papers:123456789/5065 is not listed on IDEAS
    8. Daniele Checchi & Vito Peragine, 2010. "Inequality of opportunity in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 429-450, December.
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    Cited by:

    1. Guido Citoni, 2015. "On the inverse relationship between ex-ante and ex-post moral hazard: the case of smokers," Working Papers CEB 15-041, ULB -- Universite Libre de Bruxelles.

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    Keywords

    moral hazard; health care consumption; equality of opportunities;
    All these keywords.

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