Cover: Demand for Health Insurance

Demand for Health Insurance

A Theoretical and Empirical Investigation

Published 1973

by Charles E. Phelps


Download eBook for Free

FormatFile SizeNotes
PDF file 7.6 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 Format Price
Add to Cart Paperback210 pages $35.00

Develops a theory of demand for reimbursement health insurance that incorporates the effects of the insurance on demand for medical care. This theory applies to insurance with a limited number of parameters available for consumer choice (a coinsurance rate and a maximum payment). Household interview data from a 1963 survey are used to study actual insurance parameters chosen by the sampled families. Demand for reimbursement insurance is also estimated from aggregated (annual) time series data, where the variable studied is average coverage level of the population. Key results of the studies show that the estimated income elasticity for insurance is .2 to .4 and that estimated own-price elasticity is -.25 to -1.1, depending on the type of insurance.

This report is part of the RAND report series. The report was a product of RAND from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.