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CINCH - Health Economics Research Center

Upcoming Events

CINCH Academy (April 01 - April 07, 2019)

Application Deadline: February 1, 2019

Monday Health Economics Seminar


On Monday May 14, 2018, 14:00 - 15:30 Christian Waibel (ETH Zürich) will present:

Voluntary Pooling of Genetic Risk: A Health Insurance Experiment

Scientific and technological advances increasingly allow for better tailoring of health insurance plans to individual health risk profiles. This development questions the sustainability of health plans that feature strong cross-subsidization across different health risk types. An important observation is that the willingness to cross-subsidize in health plans might depend on whether the risk is uncontrollable by individuals, such as genetic risk, or modifiable via health behaviors. In this paper, we provide the results of an experiment on the willingness to pool genetic risk in health insurance. Subjects’ overall health risk has an assigned, uncontrollable genetic risk part and a behavioral risk part, which can be reduced by costly effort. The experimental variation either includes behavioral risk in the pooling of a group insurance scheme or separates it out. Although we observe social preferences for pooling, we observe only a low level of actual genetic risk pooling across the two experimental conditions. This is due to both large heterogeneity in social preferences for pooling across subjects, and the dynamics of the willingness to pay for group insurance in the different experimental markets. Thus, our results indicate that mandatory pooling might be needed if, under the veil of ignorance, a society nevertheless wishes to pool certain forms of heterogeneous risk exposure, such as genetic risk.

Room: WST-C.02.12, Weststadttürme Berliner Platz 6-8, Essen

To find more on upcoming seminars, click here.

Monday Health Economics Seminar


On Monday May 7, 2018, 14:00 - 15:30 Helmuth Cremer (TSE, University of Toulouse) will present:

Long-term care policy with nonlinear strategic bequests

We study the design of long-term care (LTC) policies when children differ in their cost of providing informal care. Parents do not observe this cost, but they can commit to a "bequests rule" specifying a transfer conditional on the level of informal care. Care provided by high-costchildren is distorted downwards in order to minimize the rent of low-cost ones. Social LTC insurance is designed to maximize a weighted sum of parents' and children's utility. The optimal uniform public LTC provision strikes a balance between insurance and children's utility. Under decreasing absolute risk aversion less than full insurance is provided to mitigate the distortion on informal care which reduces children's rents. A nonuniform policy conditioning LTC benefits on bequests provides full insurance even against the risk of having children with a high cost of providing care. Quite surprisingly the level of informal care induced by the optimal (uniform or nonuniform) policy always increases in the children's welfare weight.

Room: WST-C.02.12, Weststadttürme Berliner Platz 6-8, Essen.

To find more on upcoming seminars, click here.

Monday Health Economics Seminar


On Monday April 16, 2018, 14:00 - 15:30 Norman Bannenberg (University Duisburg-Essen) will present:

The Impact of Preventive Home Visits on Utilization, Costs, and Staffing of Home-Based and Nursing Home Care

Countries are struggling with the consequences of an ageing population in terms of increased demand for long-term care services. An important policy issue is to create a composition of services that restrains resource use without impacting negatively on health and well-being for the elderly. In this respect, to prevent or at least to delay nursing home admissions is crucial. Preventive home visits (PHV) are types of programs that have been introduced in several countries in different varieties. The purpose is to support autonomy and independence as well as preventing disability and nursing home admissions. Older people are visited by a nurse to assess the various aspects of their health condition followed by initiation of preventive measures. Previous studies show somewhat conflicting results regarding the effects of PHV on disability and composition of care services. This study contributes to the literature by exploiting a natural experiment that covers all Norwegian municipalities. Hence, the study is population-based and follows subjects over a long time period, which is important since both since public health interventions may not show immediate effect and also, the effect may decline over time. We predict that PHV will increase the use of home-based services and reduce the number of nursing home residents. The design allows for applying a difference-in-differences approach to study potentially causal effects of the PHV. Results indicate that the introduction of a PHV program leads to an increase in the use of home-based care of about 5 percentage points and a reduction of the share of people in nursing homes of about 3.5 percentage points. Several robustness checks support the findings. An important follow-up would be to study the implications in terms of social costs and older people’s physical and mental health conditions.

Room: WST-C.02.12, Weststadttürme Berliner Platz 6-8, Essen.

To find more on upcoming seminars, click here.