Consumer incentives are reflected in a wide range of choices, many of which occur in both insurance- and tax-financed health care systems. However, health insurance and sick leave pay cause consumer incentives to be reflected in moral hazard effects of several types. Theoretically, ex ante moral...

This paper estimates how cost-sharing affects the use of prescription drugs. The data for this analysis are derived from the Rand Health Insurance Experiment (HIE), a randomized controlled trial that randomly assigned participants to insurance plans with varying coinsurance rates and...

Poor health habits (drinking, smoking, lack of exercise) obviously take their toll on individuals and their families. The costs to society are less obvious but certainly more far-reaching. This investigation is the first to quantify the financial burden these detrimental habits place on American...