Cookies?
Library Header Image
LSE Research Online LSE Library Services

Demand for private health insurance: how important is the quality gap?

Costa-i-Font, Joan and Garcia, Jaume (2003) Demand for private health insurance: how important is the quality gap? Health Economics, 12 (7). pp. 587-599. ISSN 1057-9230

Full text not available from this repository.

Abstract

Perceived quality of private and public health care, income and insurance premium are among the determinants of demand for private health insurance (PHI). In the context of a model in which individuals are expected utility maximizers, the non purchasing choice can result in consuming either public health care or private health care with full cost paid out-of-pocket. This paper empirically analyses the effect of the determinants of the demand for PHI on the probability of purchasing PHI by estimating a pseudo-structural model to deal with missing data and endogeneity issues. Our findings support the hypothesis that the demand for PHI is indeed driven by the quality gap between private and public health care. As expected, PHI is a normal good and a rise in the insurance premium reduces the probability of purchasing PHI albeit displaying price elasticities smaller than one in absolute value for different groups of individuals.

Item Type: Article
Official URL: http://www3.interscience.wiley.com/journal/5749/ho...
Additional Information: © 2003 John Wiley and Sons, Ltd
Library of Congress subject classification: H Social Sciences > H Social Sciences (General)
Sets: Departments > Social Policy
Departments > European Institute
Research centres and groups > LSE Health
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 25 Jul 2008 08:32
URL: http://eprints.lse.ac.uk/19931/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only