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Do you have to win it to fix it?: a longitudinal studyof lottery winners and their health care demand

Cheng, Terence C., Costa-i-Font, Joan and Powdthavee, Nattavudh (2015) Do you have to win it to fix it?: a longitudinal studyof lottery winners and their health care demand. CEP discussion paper (1339). Centre for Economic Performance (CEP), LSE, London, UK.

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Abstract

We exploit lottery wins to investigate the effects of exogenous changes to individuals' income on health care demand in the United Kingdom. This strategy allows us to estimate lottery income elasticities for a range of health care services that are publicly and privately provided. The results indicate that lottery winners with larger wins are more likely to choose private health services than public health services from the National Health Service. For high-income individuals without private medical insurance, the larger their winnings, the more likely they are to obtain private overnight hospital care. For privately insured individuals, the larger their winnings, the more likely they are to obtain private care for dental services and for eye, blood pressure, and cervical examinations. We find that medium to large winners ( $500) are more likely to have private health insurance. Larger winners are also more likely to drop coverage earlier, possibly after their winnings have been exhausted. The elasticities with respect to lottery wins are comparable in magnitude to the elasticities of household income from fixed effect models.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2015 The Authors
Divisions: European Institute
Social Policy
Centre for Economic Performance
Subjects: H Social Sciences > H Social Sciences (General)
R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine
JEL classification: D - Microeconomics > D1 - Household Behavior and Family Economics
H - Public Economics > H4 - Publicly Provided Goods > H42 - Publicly Provided Private Goods
I - Health, Education, and Welfare > I1 - Health > I11 - Analysis of Health Care Markets
Sets: Departments > European Institute
Departments > Social Policy
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Research centres and groups > LSE Health and Social Care
Date Deposited: 19 Mar 2015 10:34
Last Modified: 07 Aug 2019 23:25
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/61273

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