The Effect of Health Insurance on the Substitution between Public and Private Hospital Care

20 Pages Posted: 14 Jun 2018

See all articles by Denise Doiron

Denise Doiron

University of New South Wales

Nathan Kettlewell

University of Sydney

Date Written: June 2018

Abstract

Researchers have long been interested in estimating the causal effect of health insurance on health‐care utilisation. Less attention has been given to measuring the impact of insurance on the substitution between private and public sector care. We estimate this effect for hospital admissions in Australia. To identify causal effects we use household variables as instruments, namely, information on partner's health and family aspirations. We find that having private health insurance increases the probability of a hospital admission by 5–6 percentage points. This net effect is the result of a considerable substitution from public to private care, which has important policy implications.

Suggested Citation

Doiron, Denise and Kettlewell, Nathan, The Effect of Health Insurance on the Substitution between Public and Private Hospital Care (June 2018). Economic Record, Vol. 94, Issue 305, pp. 135-154, 2018, Available at SSRN: https://ssrn.com/abstract=3196145 or http://dx.doi.org/10.1111/1475-4932.12394

Denise Doiron (Contact Author)

University of New South Wales ( email )

High Street
Sydney, NSW 2052
Australia
+61 2 9385 3734 (Phone)
+61 2 9313 6337 (Fax)

HOME PAGE: http://economics.web.unsw.edu.au/people/DDOIRON/

Nathan Kettlewell

University of Sydney ( email )

Rm 370 Merewether (H04)
The University of Sydney
Sydney, NSW 2006 2008
Australia

HOME PAGE: http://sydney.edu.au/arts/economics/staff/profiles/nathan.kettlewell.php

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