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Household Preferences and Joint Decisions on Employer‐Provided Health Insurance Access
Author(s) -
Shiu JiLiang,
Tang MengChi
Publication year - 2016
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/manc.12129
Subject(s) - proxy (statistics) , wife , unit (ring theory) , health insurance , economics , dual (grammatical number) , actuarial science , demographic economics , business , health care , economic growth , psychology , computer science , art , mathematics education , literature , machine learning , political science , law
This paper examines how spousal access to employer‐provided health insurance ( EPHI ) affects preferences to acquire the same access at both the individual and household level. Regarding household decision process as a cooperative, simultaneous game between husband and wife, the empirical results show that spousal access to EPHI is negatively related to own EPHI access, indicating that household members as a unit prefer single EPHI access to dual access. Using family income share as a proxy for individual indirect utility, this study shows that the husband's incremental disutility of having spousal EPHI access is greater than that of the wife.