Investigating the Effect of Health Insurance in the COVID-19 Pandemic

Rajashri Chakrabarti, Lindsay Meyerson, William Nober and Maxim Pinkovskiy

No 20200925, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: Does health insurance improve health? This question, while apparently a tautology, has been the subject of considerable economic debate. In light of the COVID-19 pandemic, it has acquired a greater urgency as the lack of universal health insurance has been cited as a cause of the profound racial gap in coronavirus cases, and as a cause of U.S. difficulties in managing the pandemic more generally. However, estimating the effect of health insurance is difficult because it is (generally) not assigned at random. In this post, we approach this question in a novel way by exploiting a natural experiment—the adoption of the Affordable Care Act (ACA) Medicaid expansion by some states but not others—to tease out the causal effect of a type of health insurance on COVID-19 intensity.

Keywords: COVID-19; Affordable Care Act; regression discontinuity (search for similar items in EconPapers)
JEL-codes: I13 I18 (search for similar items in EconPapers)
Date: 2020-09-25
New Economics Papers: this item is included in nep-dem, nep-hea and nep-ias
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