Plausibly Exogenous [1283] - Moral Hazard (08/07/2023)
LHS Variable
Number of visits
RHS Variable
Copayment rate
Source of Exogenous Variation
In 1993, public health insurance reduced its cost-sharing rates for most ambulatory services. Most French households, however, are, in addition, partly or fully covered by a supplementary, private insurance contract. Some of the firms providing these contracts decided to compensate for this reduction in public coverage by extending their guarantees and increasing the premium; others, on the contrary, seized this opportunity to redesign their contracts by introducing a copayment rate.
- Chiappori, Durand, and Geoffard (1998), “Moral hazard and the demand for physician services: first lessons from a French natural experiment”