Elasticities of market shares and social health insurance choice in Germany: a dynamic panel data approach.

Abstract:

:In 1996, free choice of health insurers was introduced to the German social health insurance system. One objective was to increase efficiency through competition. A crucial precondition for effective competition among health insurers is that consumers search for lower-priced health insurers. We test this hypothesis by estimating the price elasticities of insurers' market shares. We use unique panel data and specify a dynamic panel model to explain changes in market shares. Estimation results suggest that short-run price elasticities are smaller than previously found by other studies. In the long-run, however, estimation results suggest substantial price effects.

journal_name

Health Econ

journal_title

Health economics

authors

Tamm M,Tauchmann H,Wasem J,Gress S

doi

10.1002/hec.1167

subject

Has Abstract

pub_date

2007-03-01 00:00:00

pages

243-56

issue

3

eissn

1057-9230

issn

1099-1050

journal_volume

16

pub_type

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