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...

Using data from the Rand Health Insurance Study, which randomly assigned families into a prepaid group practice (PGP) and a fee-for-service insurance plan, this study finds different patterns of outpatient mental health care for the two groups. In the absence of cost sharing, fee-for-service...