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Quantitative analysis of health insurance reform: Separating regulation from redistribution
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2013 (English)In: Review of economic dynamics (Print), ISSN 1094-2025, E-ISSN 1096-6099, Vol. 16, no 3, 383-404 p.Article in journal (Refereed) Published
Abstract [en]

Two key components of the recent U.S. health reform are a new regulation of the individual health insurance market and an increase in income redistribution in the economy. Which component contributes more to the welfare outcome of the reform? We address this question by constructing a general equilibrium life-cycle model that incorporates both medical expenses and labor income risks. We replicate the key features of the current health insurance system in the U.S. and calibrate the model using the Medical Expenditures Panel Survey dataset. We find that the reform decreases the number of uninsured more than twice and generates substantial welfare gains. These welfare gains mostly come from the redistributive measures embedded in the reform, rather than from the regulatory changes.

Place, publisher, year, edition, pages
2013. Vol. 16, no 3, 383-404 p.
Keyword [en]
Health insurance, Health reform, Risk sharing, General equilibrium
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:uu:diva-204101DOI: 10.1016/j.red.2012.09.002ISI: 000320292200001OAI: oai:DiVA.org:uu-204101DiVA: diva2:637849
Available from: 2013-07-23 Created: 2013-07-22 Last updated: 2017-12-06Bibliographically approved

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Pashchenko, Svetlana

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