In this paper, we analyze the joint regulation of health care providers and health insurance contracts in a framework which contains both induced demand effects from physicians and ex post moral hazard behaviors from patients. After defining a framework where these two kinds of behaviors can be...

According to insurance theory, agents who have insurance coverage have less incentives to make preventive actions. In the case of complete coverage, this behavior, called ex ante moral hazard, is so strong that policy holders make no preventive action. Shavell [1979] shows that the optimal...