| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w26288 |
| 来源ID | Working Paper 26288 |
| The Two Margin Problem in Insurance Markets | |
| Michael Geruso; Timothy J. Layton; Grace McCormack; Mark Shepard | |
| 发表日期 | 2019-09-23 |
| 出版年 | 2019 |
| 语种 | 英语 |
| 摘要 | Insurance markets often feature consumer sorting along both an extensive margin (whether to buy) and an intensive margin (which plan to buy). We present a new graphical theoretical framework that extends the workhorse model to incorporate both selection margins simultaneously. A key insight from our framework is that policies aimed at addressing one margin of selection often involve an economically meaningful trade-off on the other margin in terms of prices, enrollment, and welfare. For example, while a larger penalty for opting to remain uninsured reduces the uninsurance rate, it also tends to lead to unraveling of generous coverage because the newly insured are healthier and sort into less generous plans, driving down the relative prices of those plans. While risk adjustment transfers shift enrollment from lower- to higher-generosity plans, they also sometimes increase the uninsurance rate by raising the prices of less generous plans, which are the entry points into the market. We illustrate these trade-offs in an empirical sufficient statistics approach that is tightly linked to the graphical framework. Using data from Massachusetts, we show that in many policy environments these trade-offs can be empirically meaningful and can cause these policies to have unexpected consequences for overall social welfare. |
| 主题 | Microeconomics ; Economics of Information ; Financial Economics ; Financial Institutions ; Public Economics ; National Fiscal Issues ; Health, Education, and Welfare ; Health |
| URL | https://www.nber.org/papers/w26288 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/583962 |
| 推荐引用方式 GB/T 7714 | Michael Geruso,Timothy J. Layton,Grace McCormack,et al. The Two Margin Problem in Insurance Markets. 2019. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w26288.pdf（3448KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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