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- Title
Private insurance subsidies and public health care markets: evidence from Canada.
- Authors
Stabile, Mark
- Abstract
In this study I examine the effects of government subsidies to employer-provided health insurance on the decision to purchase insurance, and on utilization of publicly funded health services. Using unique variation in tax subsidies across Canadian provinces as an instrument, I estimate the effects of these subsidies on the demand for supplemental health insurance and their extended effects on the decision to use publicly-funded health services. My results show that government subsidies through tax exemptions have significant effects on the decision to purchase insurance. Furthermore, additional insurance policies lead to moral hazard in the use of publicly funded health services.
- Subjects
CANADA; HEALTH insurance; FEDERAL aid to health planning; PUBLIC health
- Publication
Canadian Journal of Economics, 2001, Vol 34, Issue 4, p921
- ISSN
0008-4085
- Publication type
Article
- DOI
10.1111/0008-4085.00106