This report is part of a joint study between the European Commission (EC), the World Bank, andthe Organisation for Economic Co-operation and Development (OECD). It aims to inform activation and employment support and social inclusion policy making and programs through an improved understanding...

Health care demand price elasticies are often estimated from samples conditioned to include only sike people. This paper shows that not only may such estimates be statistically biased, but even when properly estimated they can only be interpreted as short-run price responses.