Abstract
Premium subsidies have been advocated as an alternative to social health insurance. These subsidies are paid if expenditure on health insurance exceeds a given share of income. In this paper, we examine whether this approach is superior to social insurance from a welfare perspective. We show that the results crucially depend on the correlation of health and productivity. For a positive correlation, we find that combining premium subsidies with social insurance is the optimal policy.
| Item Type: | Paper |
|---|---|
| Faculties: | Economics Economics > Chairs > Junior Professor in Public Economics |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| Item ID: | 19469 |
| Date Deposited: | 15. Apr 2014 08:51 |
| Last Modified: | 29. Apr 2016 09:16 |
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