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Health Care Quality and Economic Inequality

Tullio Jappelli (), Luigi Pistaferri () and Guglielmo Weber ()

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: We argue that health care quality has an important impact on economic inequality and on saving behaviour. We exploit district-wide variability in health care quality provided by the Italian universal public health system to identify the effect of quality on income inequality, health inequality and precautionary saving. We find that in lower quality districts there is greater income and health dispersion and higher precautionary saving. The analysis carries important insights for the ongoing debate about the validity of the life-cycle model and interesting policy implications for the design of health care systems.

New Economics Papers: this item is included in nep-hea and nep-ltv
Date: 2004-06-01
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Published in Health Economics, April 2007, vol. 16, issue 4, pages 327-346

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