Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2002:4: Reporting Sick: Are Sporting Events Contagious?

Peter Skogman Thoursie ()
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Peter Skogman Thoursie: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden

Abstract: Moral hazard is easy to justify theoretically but difficult to detect empirically. Individuals may report sick due to illness as well as for moral hazard reasons. Potential abuse of the sickness insurance system in Sweden is estimated by comparing the change between the number of men and women who report sick during a popular sporting event and a preceding time period. Difference-in- difference estimates provide clear evidence that the number of men who reported sick increased in order to watch the sporting event on television.

Keywords: Reporting sick; Moral hazard; Difference-in-difference

JEL-codes: J22; J29

25 pages, February 28, 2002

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