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Acquatella, Angélique
(2023)
The Demand Elasticity of Health Care Spending for Low-Income Individuals.
TSE Working Paper, n. 23-1477, Toulouse
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Abstract
Low-income individuals are typically the most price sensitive segment of the mar-ket, but this is not true in the market for health care services. I show that low-income individuals have a smaller demand elasticity of medical spending with re-spect to coinsurance, relative to their higher income counterparts, using data from the RAND Health Insurance experiment. The null effect is driven by disproportion-ate share of low-income individuals who consume zero health care. The key insight is that low-income individuals may optimally consume zero health care because, when marginal utility of consumption is high, forgoing non-medical consumption becomes very costly.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | September 2023 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | income effects, health care demand elasticity, corner solution |
| JEL Classification: | D11 - Consumer Economics - Theory I12 - Health Production - Nutrition, Mortality, Morbidity, Suicide, Substance Abuse and Addiction, Disability, and Economic Behavior |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 18 Dec 2023 16:16 |
| Last Modified: | 18 Dec 2023 16:16 |
| OAI Identifier: | oai:tse-fr.eu:128561 |
| URI: | https://publications.ut-capitole.fr/id/eprint/48294 |
