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This paper deals with the phenomenon of risk-selection and its appearance in the german compulsory health insurance …
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stylized way, we study the effects of medical insurance and competition in the guise of free choice of physician. Medical … overtreated. We find that with insurance, moral hazard looms on both sides of the market: patients consult more often and … physicians overtreat more often than in the baseline condition. Competition decreases overtreatment compared to the baseline and …
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