Abstract

http://ssrn.com/abstract=453500
 
 

References (61)



 
 

Citations (2)



 


 



Subsidizing Addiction: Do State Health Insurance Mandates Increase Alcohol Consumption?


Jonathan Klick


University of Pennsylvania Law School; Erasmus School of Law; PERC - Property and Environment Research Center

Thomas Stratmann


George Mason University - Buchanan Center Political Economy; CESifo (Center for Economic Studies and Ifo Institute); Harvard University - Edmond J. Safra Center for Ethics


Journal of Legal Studies, Vol. 35, p. 175, 2006

Abstract:     
We include insurance for addiction treatment in the standard rational addiction model and show that an increase in the level of insurance for addiction treatment induces a forward-looking individual to consume more of a harmfully addictive good currently. We test this implication using cross-state variation in the adoption of mental health parity mandates. We examine the effects of these mandates on the consumption of alcohol and find that parity legislation leads to a statistically significant increase in alcohol consumption. To account for the possible endogeneity of the adoption of mental health parity mandates, we perform an instrumental variables analysis, and find that the Ordinary Least Squares significantly underestimates the insurance effect on alcohol consumption.

Number of Pages in PDF File: 24

Keywords: Rational Addiction, Alcohol, Mental Health, Insurance, Parity

JEL Classification: I12, I18, K32, J32

Accepted Paper Series





Download This Paper

Date posted: November 10, 2003 ; Last revised: January 28, 2010

Suggested Citation

Klick, Jonathan and Stratmann, Thomas, Subsidizing Addiction: Do State Health Insurance Mandates Increase Alcohol Consumption?. Journal of Legal Studies, Vol. 35, p. 175, 2006. Available at SSRN: http://ssrn.com/abstract=453500 or http://dx.doi.org/10.2139/ssrn.453500

Contact Information

Jonathan Klick (Contact Author)
University of Pennsylvania Law School ( email )
3501 Sansom Street
Philadelphia, PA 19104
United States
2157463455 (Phone)
Erasmus School of Law ( email )
3000 DR Rotterdam
Netherlands
PERC - Property and Environment Research Center
2048 Analysis Drive
Suite A
Bozeman, MT 59718
United States

Thomas Stratmann
George Mason University - Buchanan Center Political Economy ( email )
4400 University Drive
Fairfax, VA 22030
United States
703-993-2330 (Phone)
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Harvard University - Edmond J. Safra Center for Ethics ( email )
124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

Feedback to SSRN


Paper statistics
Abstract Views: 1,664
Downloads: 159
Download Rank: 112,003
References:  61
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.328 seconds