Article ID Journal Published Year Pages File Type
9549164 Economics Letters 2005 5 Pages PDF
Abstract
According to insurance theory, agents who have insurance coverage have less incentives to make preventive actions. In this paper, we argue that the optimality of a deductible [Shavell, S., 1979. On moral hazard and insurance, Quarterly Journal of Economics 93, 541-562.] cannot be extended to the health insurance sector.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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