Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Smock cited in story on how low marriage rates may exacerbate marriage-status economic inequality

Shapiro says Americans' seemingly volatile spending pattern linked to 'sensible cash management'

Work of Cigolle, Ofstedal et al. cited in Forbes story on frailty risk among the elderly

Highlights

Sarah Burgard and former PSC trainee Jennifer Ailshire win ASA award for paper

James Jackson to be appointed to NSF's National Science Board

ISR's program in Society, Population, and Environment (SPE) focuses on social change and social issues worldwide.

McEniry and Schoeni host Conference on Long-run Impacts of Early Life Events

Next Brown Bag


PSC Brown Bags will return in the fall

Sources of advantageous selection: Evidence from the Medigap insurance market

Archived Abstract of Former PSC Researcher

Fang, H.M., M.P. Keane, and Daniel Silverman. 2008. "Sources of advantageous selection: Evidence from the Medigap insurance market." Journal of Political Economy, 116(2): 303-350.

We provide evidence of advantageous selection in the Medigap insurance market and analyze its sources. Conditional on controls for Medigap prices, those with Medigap spend, on average, $4,000 less on medical care than those without. But if we condition on health, those with Medigap spend $2,000 more. The sources of this advantageous selection include income, education, longevity expectations, and financial planning horizons, as well as cognitive ability. Conditional on all these factors, those with higher expected medical expenditures are more likely to purchase Medigap. Risk preferences do.

DOI:10.1086/587623 (Full Text)

Country of focus: United States.

Browse | Search : All Pubs | Next