Dynamic Inefficiencies in Employment-Based Health Insurance System Theory and Evidence
---- Acknowledgements -----
We are grateful to Daron Acemoglu, Luís Cabral, Michael Chernew, Amy Finkelstein, Igal Hendel, Nolan Miller, Stephen Morris, Jörn-Steffen Pischke, Aloysius Siow and seminar participants at University of Connecticut, Maryland, Rice/Houston, Texas A&M, Fudan, Peking, Yale as well as 2007 ERIU Conference (Ann Arbor), and 2007 IOMS Workshop (Shanghai) for asking many useful questions and for helpful suggestions. Special thanks to Ray Kuntz and Michael Nolte for help with the MEPS and HRS data respectively. We are responsible for all shortcomings. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.