nep-ias New Economics Papers
on Insurance Economics
Issue of 2018‒04‒16
eleven papers chosen by
Soumitra K. Mallick
Indian Institute of Social Welfare and Business Management

  1. The Effects of DACA on Health Insurance, Access to Care, and Health Outcomes By Osea Giuntalla
  2. Using CMS Data to Understand D-SNP Market Trends and Performance, Dual Eligible Characteristics, and State Medicaid Managed Care Programs By Rebecca SweetlLester; Danielle Chelminsky
  3. Indifference Pricing in Reinsurance Using Coherent Monetary Criteria By Nabil Kazi-Tani
  4. The parental home as labour market insurance for young Greeks during the crisis By Christopoulou, Rebekka; Pantalidou, Maria
  5. Cost-Sharing Design Matters : A Comparison of the Rebate and Deductible in Healthcare By Remmerswaal, Minke; Boone, Jan; Bijlsma, Michiel; Douven, R.C.M.H.
  6. The emergence of maritime insurance in Bordeaux port-city in the 19th century By Hubert Bonin
  7. Long-Term Effects of Job-Search Assistance: Experimental Evidence Using Administrative Tax Data By Dayanand S. Manoli; Marios Michaelides; Ankur Patel
  8. Cessation of activity benefit of Spanish self-employed workers: a heterogeneous impact evaluation By Moral-Arce, Ignacio; Martín-Román, Javier; Martín-Román, Ángel L.
  9. How laboratory experiments could help disentangle the influences of production risk and risk preferences on input decisions By Bougherara, Douadia; Nauges, Céline
  10. Human Resources in Healthcare and Health Outcomes in India By Motkuri, Venkatanarayana; Mishra, Uday Shankar
  11. False diagnoses: pitfalls of testing for asymmetric information in insurance markets By de Meza, David; Webb, David C.

  1. By: Osea Giuntalla
    Abstract: This paper studies the effects of the 2012 Deferred Action for Childhood Arrivals (DACA)initiative on health insurance coverage, access to care, health care use, and health outcomes. Weexploit a difference-in-differences that relies on the discontinuity in program eligibility criteria.We find that DACA increased insurance coverage. In states that granted access to Medicaid, theincrease was driven by an increase in public insurance take-up. Where public coverage was notavailable, DACA eligibility increased individually purchased insurance. Despite the increase ininsurance coverage, there is no evidence of signi cant increases in health care use, although thereis some evidence that DACA increased demand for mental health services. After 2012, DACA-eligible individuals were more likely to report a usual place of care and less likely to delaycare because of financial restrictions. Finally, we fi nd some evidence that DACA improvedself-reported health, and reduced depression symptoms, indicators of stress and anxiety, andhypertension. These improvements are concentrated among individuals with income below thefederal poverty level.
    Date: 2018–01
  2. By: Rebecca SweetlLester; Danielle Chelminsky
    Abstract: Mathematica researchers from the Integrated Care Resource Center will provide information on D-SNP enrollment and market trends, including aligned enrollment; dual eligible beneficiary characteristics, including eligibility categories, such as full and partial duals, QMBs, SLMBs, etc.
    Keywords: dual eligible, special needs plans, CMS date, Medicare, Medicaid, managed care
    JEL: I
  3. By: Nabil Kazi-Tani (SAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon)
    Abstract: This paper focuses on a non-proportional reinsurance pricing problem, for a layer contract with reinstatements. After defining the indifference price with respect to both a concave utility function and a convex risk measure, we prove that is is contained in some interval whose bounds are easily calculable. We provide numerical examples computed from real insurance data.
    Keywords: Insurance premium calculation, Coherent risk measures, Concave monetary utility functions, Reinstatements, Reinsurance layers
    Date: 2018–03–25
  4. By: Christopoulou, Rebekka; Pantalidou, Maria
    Abstract: Labour market conditions in Greece have severely deteriorated during the crisis, affecting youths the most. Using the Greek crisis as a case-study, this paper examines the role of the family as a social safety net for its young members. Specifically, we test the relationship between youth labour outcomes and parental coresidence, whether this relationship has become stronger during the crisis, and the degree to which the relationship is causal. Our results confirm that the parental home is a refuge both for jobless youth and for those in poorly paid, insecure jobs, and this role has intensified during the crisis. We find no reverse causality between co-residence and employment status for young men, and significant reverse causality for women. This finding implies that all youths live in the parental home when they are in need themselves, but it is young women not men who live with parents when parents are in need or for cultural reasons.
    Keywords: living arrangements; parental coresidence; youth employment; great recession; Greece policy; European Parliament; World Hellenic Inter-Parliamentary Association
    JEL: F3 G3
    Date: 2018–02
  5. By: Remmerswaal, Minke (Tilburg University, TILEC); Boone, Jan (Tilburg University, TILEC); Bijlsma, Michiel (Tilburg University, TILEC); Douven, R.C.M.H.
    Abstract: Since 2006, the Dutch population has faced two different cost-sharing schemes in health insurance for curative care: a mandatory rebate of 255 euros in 2006 and 2007, and since 2008 a mandatory deductible. Using administrative data for the entire Dutch population, we compare the effect of both cost-sharing schemes on healthcare consumption between 2006 and 2013. We use a regression discontinuity design which exploits the fact that persons younger than eighteen years old neither face a rebate nor a deductible. Our fixed effect estimate shows that for individuals around the age of eighteen, a one euro increase of the deductible reduces healthcare expenditures 18 eurocents more than a euro increase of the rebate. These results demonstrate that differences in the design of a cost-sharing scheme can lead to substantial different effects on total healthcare expenditure.
    Keywords: deductible; rebate; cost-sharing; healthcare consumption; regression discontinuity; panel data
    Date: 2017
  6. By: Hubert Bonin
    Abstract: The resurgence of the marine insurance specialty in the years 1830-1860 reflected the resumption and the extension of transoceanic trade as well as the technical and quantitative renewals of the fleets. Communities of place crystallized around this tool: the Bordeaux city-port federated ship-owners, traders-ship-owners, traders and insurers to sharpen it, by establishing a capital of experience according to the hazards of the navigation.
    Keywords: Insurance, shipping companies, Bordeaux Harbour, Financial history
    JEL: D82 G22 N73
    Date: 2018
  7. By: Dayanand S. Manoli; Marios Michaelides; Ankur Patel
    Abstract: This paper uses administrative tax data to examine the long-term effects of an experimental job-search assistance program operating in Nevada in 2009. The program required randomly-selected unemployed workers who had just started collecting unemployment insurance (UI) benefits to undergo an eligibility review and receive personalized job-counseling services. The program led to substantial short-term reductions in UI receipt, and to persistent, long-term increases in employment and earnings. The program also affected participants’ family outcomes, including total income, tax filing, tax liability, and home ownership. These findings show that job-search assistance programs may produce substantial long-term effects for participants and their families.
    JEL: I38
    Date: 2018–03
  8. By: Moral-Arce, Ignacio; Martín-Román, Javier; Martín-Román, Ángel L.
    Abstract: The goal of this paper is to evaluate the effects of a public policy implemented through the Spanish Social Security system: the Cessation of Activity Benefit (CAB) for self-employed workers. Making use of the Continuous Sample of Working Lives (MCVL) and by means of a Propensity Score Matching (PSM) methodology, our results show that, when we do not take into account heterogeneity in the treatment, self-employed workers receiving CAB experience non-employment spells between 22 and 33 logarithmic points longer than their not entitled counterparts. We also detect that this difference is not constant but depends on the likelihood of being treated. We believe that the two traditional problems that affect the insurance markets, consequence of the asymmetric information, adverse selection and moral hazard, are behind these results.
    Keywords: Self-employment, Impact Evaluation, Propensity Score Matching, Opportunistic Behavior
    JEL: D04 J08 J64 J65 K31
    Date: 2018–03–10
  9. By: Bougherara, Douadia; Nauges, Céline
    Abstract: The purpose of this article is to further our understanding of input choices (such as pesticides or fertilisers) when producers face production risk that depends on a random shock and on the quantity of input used. Using laboratory experiments, we study the role of risk preferences and public policies (here, a lump-sum subsidy and insurance) on producers’ input decisions in two situations: i) a risk-decreasing input; and ii) a risk-increasing input. Our findings raise questions on the sensitivity of optimal input choices to risk preferences and the relevance of the expected utility model to describe farmers’ decisions.
    Keywords: laboratory experiment; input choice; production risk; risk preferences; subsidy; insurance
    Date: 2018–03
  10. By: Motkuri, Venkatanarayana; Mishra, Uday Shankar
    Abstract: The paper examined the growth and adequacy of the workforce engaged in health care sector in India for two decades based on Census data along with the association between health workers density and educational development and then selected health outcome (i.e. IMR). Despite the remarkable improvement in health workers density particularly during 2001-11, the country is falling short of the same. It is observed that there is a significantly positive association between density of health workforce and educational development. There is a significant and strong positive relationship / association between the density of health workers and health outcomes.
    Keywords: Human Resources in Health, Health Workers, Health, Health Outcomes, India
    JEL: I10 I18 I19 I2
    Date: 2018–03
  11. By: de Meza, David; Webb, David C.
    Abstract: Established tests for asymmetric information in insurance markets are examined. The most commonly used, that information is symmetric if high and low cover contracts have the same loss rate, is inconsistent with standard assumptions that imply that under symmetric information, all contracts o¤er full-cover. Incomplete cover and symmetric information can be reconciled if there are claim-processing costs, but now existing tests fare badly, partly due to the divergence between marginal and average selection effects. Ignoring the nature of loading factors may cause recent studies to mismeasure the welfare costs of asymmetric information but these problems are remedial.
    JEL: G32 F3 G3
    Date: 2017–04–05

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