Analyzing the Effects of Insuring Health Risks: On the Trade-off between Short Run Insurance Benefits vs. Long Run Incentive Costs

Harold L. Cole, Soojin Kim, Dirk Krueger

NBER Working Paper No. 18572
Issued in November 2012

---- Acknowledgements -----

We thank Hanming Fang, Iourii Manovskii and participants at EUI, EIEF, the Penn Macro Lunch and the Annual Meeting for Society for Economic Dynamics 2012 for many helpful comments. Krueger gratefully acknowledges financial support from the NSF under grant SES-0820494. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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