The third essay examines the welfare effects of tax subsidies for insurance premiums in a model of an insurance market with private information. This study finds that any second-best equilibrium can be achieved for some rate of a proportional premium subsidy. These second-best outcomes can typically not be achieved in a private insurance market without subsidies. This result suggests that subsidies for health insurance contributions, such as the tax deduction for employers' health insurance contribution in the United States, can mitigate the effects of adverse selection in health insurance markets.Table 3.1 shows sample statistics for both the overall population and those affected by job loss. ... They are more likely to smoke and be obese. ... likely to be employed in managerial or professional positions, and they are more likely to receive low pay, which is defined as an hourly wage below $4.72 in 1982-1984 prices.
|Title||:||Essays on Health and Household Finances|
|Publisher||:||ProQuest - 2006|