Background: Financial incentives and institutions play a key role in determining health care expenditures. The health care sector in Europe is mostly publicly funded and financed in contrast to other OECD-countries. The financing is through taxes and service provision by public hospitals and...

This chapter reviews topics related to the demand for health insurance, including the question of how choice of health insurance should be structured for consumers. After the first section summarizes some of the institutional features of health insurance in high- and middle-income countries, a...

We use a Regression Discontinuity Design (RDD) to evaluate the impact of cost-sharing on the use of health services. In the Italian health system, individuals reaching age 65 and earning low incomes are given total exemption from cost-sharing for health services consumption. Since the...

This paper presents a dynamic general equilibrium model designed to examine the macroeconomic effects and welfare implications of alternative reforms to the US health insurance system. Specifically, it scrutinizes the extent to which health care reform can mitigate inefficiencies stemming from...

As of 2012, 7 percent of employers did not cover spouses when other coverage was available to them; and 4 percent of employers with 1,000 or more employees reported not providing such spousal coverage. As of late 2012-early 2013, another 8 percent of large employers were reporting that they...

The creation of tax-free health savings accounts presents a new opportunity to reduce the distortions created by federal tax preferences for health-related expenditures, and ultimately help eliminate those distortions. This paper proposes changes to current law that would allow most workers to...

In the United States, two patients with the same medical condition can receive drastically different treatments. In addition, the same patient can walk into two physicians’ offices and receive equally disparate treatments. This chapter attempts to understand why. It focuses on three areas: the...

Medical Savings Accounts (MSAs) have been controversially debated as an alternative healthcare financing mechanism since the 1970s. Only a few countries adopted MSAs (to different extents) within their healthcare system, e.g. Singapore, China, South Africa, and the US. Proponents argue that MSAs...

We study the moral hazard effects of the drug copayment threshold in Finland using detailed prescription drug purchase data. The analysis reveals that the average drug costs increase discontinuously by 17% at the threshold above which out-of-pocket drug costs decrease substantially. Our results...

This study examines the effects of urbanization on household health expenditure. Using a unique bi-annually household-level dataset from 2012-2016 from Vietnam, we obtain key findings as follows. To mitigate possible endogeneity concerns, we utilize a two-stage least squares regression (2SLS)...