nep-ias New Economics Papers
on Insurance Economics
Issue of 2009‒11‒21
three papers chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Bussiness Management

  1. The Value of Fixed-Reimbursement Healthcare Insurance- Evidence from Cancer Patients in Ontario, Canada By Christopher Longo; Michel Grignon
  3. Health Status and Health Care Access of Farm and Rural Populations By Jones, Carol Adaire; Parker, Timothy S.; Ahearn, Mary; Mishra, Ashok K.; Variyam, Jayachandran N.

  1. By: Christopher Longo (Health Services Management, Degroote School of Business, Centre for Health Economics and Policy Analysis, McMaster University); Michel Grignon (Department of Economics, Centre for Health Economics and Policy Analysis, McMaster University)
    Abstract: Critical illness insurance (CII) is a fixed-reimbursement scheme conditioned on the event of a loss, not the size of the loss. We investigate demand for CII. Consumers will be willing to purchase CII depending on their degree of risk aversion to the cost of treating illness, their forgone income, and desire for being compensated for utility loss when sick. Using a theoretical model based on Eeckhoudt (2003), we run simulations using Canadian data for CII policy reimbursement dollar values of purchases, family income, cancer expenditure, and net wealth. We then evaluate how well these models predict actual CII purchases.
    Keywords: health insurance, healthcare insurance, fixed-reimbursement insurance, state-utility transfer, expected utility, cancer
    Date: 2009
  2. By: Maria De Paola; Valeria Pupo; Vincenzo Scoppa (Dipartimento di Economia e Statistica, Università della Calabria)
    Abstract: In this paper we analyse how the absence behaviour of Italian public sector employees has been affected by a law, passed in June 2008, reducing sick leave compensation and increasing monitoring intensity. We use micro-data on a sample of about 860 workers, employed at an Italian public administration, for years going from 2005 to 2009. We estimate the effect of the reform using linear and non-linear estimators. As predicted by agency theory, individuals react to economic incentives: the employees in our sample have considerably reduced their absences under the new regime. Since the reform has affected employees in a non uniform way, we show that the reduction of absenteeism is significantly stronger for employees suffering higher earning losses. Results also show that while the reform has reduced the duration of short absence spells, the duration of long spells has increased. We argue that this is due to the non-linearity of earning losses introduced by the new law.
    Keywords: Worker Absenteeism, Moral Hazard, Shirking, Sickness, Insurance Contracts
    JEL: J41 J45 M52 D86 C20
    Date: 2009–10
  3. By: Jones, Carol Adaire; Parker, Timothy S.; Ahearn, Mary; Mishra, Ashok K.; Variyam, Jayachandran N.
    Abstract: Rural residents have higher rates of age-adjusted mortality, disability, and chronic disease than their urban counterparts, though mortality and disability rates vary more by region than by metro status. Contributing negatively to the health status of rural residents are their lower socioeconomic status, higher incidence of both smoking and obesity, and lower levels of physical activity. Contributing negatively to the health status of farmers are the high risks from workplace hazards, which also affect other members of farm families who live on the premises and often share in the work; contributing positively are farmersâ higher socioeconomic status, lower incidence of smoking, and more active lifestyle. Both farm and rural populations experience lower access to health care along the dimensions of affordability, proximity, and quality, compared with their nonfarm and urban counterparts.
    Keywords: Health Economics and Policy, agriculture safety and health, electronic health records, farmer health, health, health care access, health care affordability, health care quality, health disparities, health IT, health status, mortality, rural health, telehealth, uninsured,
    Date: 2009–08

This nep-ias issue is ©2009 by Soumitra K Mallick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.