Library Header Image
LSE Research Online LSE Library Services

Risk attitudes and the demand for private health insurance: the importance of 'captive preferences'

Costa-i-Font, Joan ORCID: 0000-0001-7174-7919 and García-Villar, Jaume (2009) Risk attitudes and the demand for private health insurance: the importance of 'captive preferences'. Annals of Public and Cooperative Economics, 80 (4). pp. 499-521. ISSN 1370-4788

Full text not available from this repository.
Identification Number: 10.1111/j.1467-8292.2009.00396.x


Captivity to a mainstream public insurer, is hypothesized to constrain the choice of purchasing private health insurance, by influencing risk attitudes. Namely, risk averse individuals are more likely to stay captive to the National Health System (NHS). To empirically test this hypothesis we use a small scale database from Catalonia to explore the determinants of private health insurance (PHI) purchase under different forms of captivity along with a measure of risk attitudes. Our results confirm that the captivity corrections are significant and can potentially bias the estimates of the demand for PHI. Risk aversion increases the probability of an individual being captive to the NHS. The latter suggests a potential behavioural (or cultural) mechanism to isolate the influence of risk attitudes on the demand for PHI in publicly financed health systems.

Item Type: Article
Official URL:
Additional Information: © 2009 John Wiley and Sons
Divisions: Social Policy
European Institute
LSE Health
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
R Medicine > RA Public aspects of medicine
Date Deposited: 23 Nov 2009 14:37
Last Modified: 05 Jan 2024 04:12

Actions (login required)

View Item View Item