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

No 231:
Properties of actuarially-fair and pay-as-you-go health insurance schemes for the elderly. An OLG model approach

Per-Olov Johansson ()

Abstract: The aged dependency ratio or ADR is growing at a fast pace in many countries. This fact causes stress to the economy and might create conflicts of interest between young and old. In this paper the properties of different health insurance systems for the elderly are analysed within an overlapping generations (OLG) model. The properties of actuarial health insurance and different variations of pay-as-you-go health insurance are compared. It turns out that the welfare properties of these contracts are heavily dependent on the economy's dynamic properties. Of particular importance is the magnitude of the rate of population growth relative to the interest rate. In addition it is shown that public health insurance is associated with an inherent externality resulting in a second-best solution.

Keywords: health insurance; optimal insurance; government insurance; PAYG insurance; OLG models; (follow links to similar papers)

JEL-Codes: H42; I18; (follow links to similar papers)

26 pages, April 6, 1998

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

hastef0231.pdf.zip    PDF-file (zipped) (124kB) 
hastef0231.pdf    PDF-file (138kB) 
hastef0231.ps.zip    PKZipped PostScript (156kB) 
hastef0231.ps    PostScript file (1007kB) 
Download Statistics
This paper is published as:
Johansson, Per-Olov, (2000), 'Properties of actuarially-fair and pay-as-you-go health insurance schemes for the elderly. An OLG model approach', Journal of Health Economics, Vol. 19, pages 477-498

Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:hastef:0231 This page was generated on 2014-12-14 19:22:54