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CINCH - Health Economics Research Center

Monday Health Economics Seminar

18.10.2017

On Monday November 6, 2017, 14:00 - 15:30 Alessandro Martinello (Lund) will present:

The Effects of Schooling on Wealth Accumulation Approaching Retirement

Education and wealth are positively correlated for individuals approaching retirement, but the direction of the causal relationship is ambiguous in theory and has not been identified in practice. We combine administrative data on individual total wealth with a reform expanding access to lower secondary school in Denmark in the 1950s, finding that schooling increases pension annuity claims but reduces the non-pension wealth of men in their 50’s. These effects grow stronger as normal retirement age approaches. Labour market mechanisms are key, with schooling increasing job mobility, reducing housing equity, increasing leverage, and improving occupational pension benefits.

Room: WST-C.02.11, Weststadttürme Berliner Platz 6-8, Essen

To find more on upcoming seminars, click here.


Monday Health Economics Seminar

10.10.2017

On Monday October 16, 2017, 14:00 - 15:30 Wanda Mimra (ETH Zürich) will present:

(Non)exclusive Contracting under Adverse Selection: An Experiment

The performance of markets with hidden information is of central importance in microeconomic theory. We present the results of a comprehensive experiment that distinguishes between the two fundamental forms of hidden information, private and common values, in different contracting environments. Contracting environments vary in terms of the market power that the screening market side has over the trades of its privately informed customers, ranging from monopoly to nonexclusive competition. Nonexclusivity of contracts is a reality in many important markets with information problems such as life insurance and health insurance markets. The degree of equilibrium play we find is striking, particularly in the complex cases of common values. Under private values, competition ensures efficient trades. Under common values, low-type buyers are to a large extent excluded under nonexclusive competition, whereas such types’ trades are only distorted under exclusive competition. This leads to a significantly higher market surplus under exclusive competition in comparison to nonexclusive competition under common values.

Room: WST-C.02.11, Weststadttürme Berliner Platz 6-8, Essen

To find more on upcoming seminars, click here.


New CINCH working paper

08.10.2017

A new working paper has been added to the CINCH working paper series: “Mental Health, Human Capital and Labor Market Outcomes” by Christopher Cronin, Matthew Forsstrom, and Nicholas Papageorge.

There are two primary treatment alternatives available to those with mild to moderate depression or anxiety: psychotherapy and medication. The medical literature and our analysis suggests that in many cases psychotherapy, or a combination of therapy and medication, is more curative than medication alone. However, few individuals choose to use psychotherapy. We develop and estimate a dynamic model in which individuals make sequential medical treatment and labor supply decisions while jointly managing mental health and human capital. The results shed light on the relative importance of several drawbacks to psychotherapy that explain patients' reluctance to use it: (1) therapy has high time costs, which vary with an individual's opportunity cost of time and flexibility of the work schedule; (2) therapy is less standardized than medication, which results in uncertainty about its productivity for a given individual; and (3) therapy is expensive. The estimated model is used to simulate the impacts of counterfactual policies that alter the costs associated with psychotherapy.   

See all working papers.