Estimating the Value of Public Insurance Using Complementary Private Insurance

Marika Cabral and Mark R. Cullen

No 22583, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The welfare associated with public insurance is often difficult to quantify because the demand for coverage is unobserved and thus cannot be used to analyze welfare. However, in many settings, individuals can purchase private insurance to supplement public coverage. This paper outlines an approach to use data and variation from private complementary insurance to quantify welfare associated with counterfactuals related to compulsory public insurance. We then apply this approach using administrative data on disability insurance. Our findings suggests that public disability insurance generates substantial surplus for the sample population, and there may be gains to increasing the generosity of coverage.

JEL-codes: H0 H53 I38 J68 (search for similar items in EconPapers)
Date: 2016-08
New Economics Papers: this item is included in nep-ias, nep-lab, nep-pbe and nep-pub
Note: AG EH LS PE
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Citations: View citations in EconPapers (1)

Published as Marika Cabral & Mark R. Cullen, 2019. "Estimating the Value of Public Insurance Using Complementary Private Insurance," American Economic Journal: Economic Policy, vol 11(3), pages 88-129.

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