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Local Market Equilibrium and the Design of Public Health Insurance System

Chao Fu and Naoki Aizawa
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Chao Fu: University of Wisconsin - Madison
Naoki Aizawa: University of Minnesota

No 1448, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: We study the design of public health insurance system and its equilibrium impacts on the labor market and the health insurance market. We develop an equilibrium model with rich heterogeneities across local markets, workers and firms; and estimate it exploiting variations across states and policy environments before and after the Affordable Care Act. The estimated model closely matches the distribution of insurance and employment status before and after the ACA. With the estimated model, we study the impacts of programs in the form of the newly proposed Medicaid block granting, which allows for state-specific Medicaid eligibility and coverage rules.

New Economics Papers: this item is included in nep-dge, nep-hea and nep-ias
Date: 2017
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