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The Aggregate Demand for Private Health Insurance Coverage in the United States

Francis Ahking (), Carmelo Giaccotto and Rexford Santerre ()

Journal of Risk & Insurance, 2009, vol. 76, issue 1, 133-157

Abstract: This article estimates the aggregate demand for private health insurance coverage in the United States using an error correction model for the period 1966–1999. Both short‐ and long‐run price and income elasticities of demand are estimated. The empirical findings indicate that both private insurance enrollment and the completeness of insurance are relatively inelastic with respect to changes in price and income in the short and long run. Moreover, the results suggest that an increase in the number cyclically and frictionally uninsured generates less welfare loss than an increase in the number of structurally uninsured.

Date: 2009
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Handle: RePEc:bla:jrinsu:v:76:y:2009:i:1:p:133-157