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 Econjournal_title
Health economicsauthors
Tamm M,Tauchmann H,Wasem J,Gress Sdoi
10.1002/hec.1167subject
Has Abstractpub_date
2007-03-01 00:00:00pages
243-56issue
3eissn
1057-9230issn
1099-1050journal_volume
16pub_type
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