Scandinavian Working Papers in Economics
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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 192:
Time Spent on Waiting Lists for Medical Care: An Insurance Approach

Magnus Johannesson (), Per-Olov Johansson () and Tore Söderqvist

Abstract: In this paper, we develop a simple model of the benefits and costs of being on a waiting list. The model shows that complex factors are in operation, implying that a shorter waiting time need not necessarily be preferred to a longer waiting time. We also present an empirical study, where a sample of Swedes are offered the possibility of purchasing private insurance, thus reducing waiting time for surgery beyond the three-month guarantee offered by the public sector health care system. Respondents could choose between two insurance contracts. A 'spike' model, where the probability of a zero WTP is strictly positive, was developed and estimated to obtain demand functions for private insurance.

Keywords: Insurance; waiting lists; willingness to pay; demand functions for insurance; spike models.; (follow links to similar papers)

JEL-Codes: D61; I10; I11; (follow links to similar papers)

28 pages, September 5, 1997

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This paper is published as:
Johannesson, Magnus, Per-Olov Johansson and Tore Söderqvist, (1998), 'Time Spent on Waiting Lists for Medical Care: An Insurance Approach', Journal of Health Economics, Vol. 17, pages 627-644

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