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The Aggregate Demand for Private Health Insurance Coverage in the United States
Author(s) -
Ahking Francis W.,
Giaccotto Carmelo,
Santerre Rexford E.
Publication year - 2009
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/j.1539-6975.2009.01290.x
Subject(s) - economics , health insurance , aggregate demand , welfare , econometrics , actuarial science , demographic economics , monetary economics , health care , economic growth , market economy , monetary policy
This article estimates the aggregate demand for private health insurance coverage in the United States using an error correction model for the period 1966–1999. Both short‐ and long‐run price and income elasticities of demand are estimated. The empirical findings indicate that both private insurance enrollment and the completeness of insurance are relatively inelastic with respect to changes in price and income in the short and long run. Moreover, the results suggest that an increase in the number cyclically and frictionally uninsured generates less welfare loss than an increase in the number of structurally uninsured.