|Kifmann, Mathias; Roeder, Kerstin (2011): Premium subsidies and social insurance: Substitutes or complements? hche Research Paper / Hamburg Center for Health Economics, 2011,1|
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 (Discussion Paper)|
Economics > Chairs > Junior Professor in Public Economics
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:51|
|Last Modified:||29. Apr 2016 09:16|