Working Paper: CEPR ID: DP2513
Authors: Carol Propper; Hedley Rees; Katherine Green
Abstract: This paper examines the determinants of the demand for private health insurance in the UK from 1978 to 1996. The focus is the impact of public and private sector quality on demand. Use of a pseudo-cohort panel allows examination of generational change and the investigation of dynamics. The results indicate that there has been generational change. Further, changes in the contractual status of senior doctors employed in the public sector has had impact on demand for the private alternative. Once these factors are taken into account, there is limited evidence of habit in purchase.
Keywords: health insurance; demand; public and private sector interactions
JEL Codes: I10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| income (E25) | demand for private medical insurance (PMI) (G52) |
| age (J14) | demand for private medical insurance (PMI) (G52) |
| cohort (C92) | demand for private medical insurance (PMI) (G52) |
| quality of public healthcare (I14) | demand for private medical insurance (PMI) (G52) |
| quality of private healthcare (I11) | demand for private medical insurance (PMI) (G52) |
| contractual status of senior doctors in the public sector (J45) | demand for private medical insurance (PMI) (G52) |
| previous purchase (L14) | current purchase of private medical insurance (PMI) (G52) |
| availability of private sector facilities (R53) | demand for private medical insurance (PMI) (G52) |