RT Generic
T1 Asymmetric Information with multiple risks: the case of the Chilean Private Health Insurance Market
A1 De La Mata, Dolores
A1 Machado, Matilde P.
A1 Olivella, Pau
A1 Valdés, Maria Nieves
A2 Universidad Carlos III de Madrid. Departamento de Economía, 
AB We extend Rothshild and Stiglitz (1976) model to two sources of risk to better proxy real-world health insurance markets. This extension produces an interesting theoretical possibility: Take individuals A and B, who are low risks in one dimension but A is riskier in the other dimension. Then, A may enjoy less coverage than B in the former dimension (coverage reversal). The existence of this reversal determines which individuals are more likely to suffer adverse selection. We adapt Chiappori and Salanié (2000) positive correlation test to account for this multi-dimensionality and apply it to individual-level claims data for the privately insured in Chile.
SN 2340-5031
YR 2022
FD 2022-07-12
LK https://hdl.handle.net/10016/35441
UL https://hdl.handle.net/10016/35441
LA eng
DS e-Archivo
RD 16 jul. 2024