Economics at your fingertips  

An experimental investigation of mixed systems of public and private health care finance

Neil Buckley (), Katherine Cuff (), Jeremiah Hurley, Logan McLeod (), Stuart Mestelman () and David Cameron ()

Journal of Economic Behavior & Organization, 2012, vol. 84, issue 3, 713-729

Abstract: This paper presents the results of a revealed-choice experiment testing the theoretical predictions of a model of a mixed system of public and private finance. We investigate behavioural responses in individuals’ willingnesses-to-pay for private health insurance to changes in the public sector allocation rule (needs-based vs. random), the supply of health care resources, and the size of the public health care budget. Of particular interest is how willingness-to-pay for private insurance feeds back into the determination of the equilibrium price of health care resources, the probability of public treatment and which individuals are left untreated. Our findings are generally consistent with the predictions of the theoretical model, although individuals consistently exhibit greater willingnesses-to-pay for private insurance than predicted resulting in a larger than predicted amount of private insurance being purchased. A commonly used risk-aversion measure only partially explains this observed deviation. We also find that, relative to a system of public financing only, a mixed system of health care finance results in higher health care prices and sicker, poorer people being left untreated.

Keywords: Experiment; Health care finance; Public health care; Rationing; Needs-based allocation; Health insurance (search for similar items in EconPapers)
JEL-codes: I13 C92 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: An Experimental Investigation of Mixed Systems of Public and Private Health Care Finance (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.jebo.2012.09.016

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-08-02
Handle: RePEc:eee:jeborg:v:84:y:2012:i:3:p:713-729