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NBER Working Papers and Publications
|June 2008||Is There a Market for Voluntary Health Insurance in Developing Countries?|
with Mark Pauly, Fredric E. Blavin: w14095
In many developing countries the proportion of health care spending paid out of pocket is about half of all spending or more. This study examines the distribution of such spending by income and care type, and the variation in spending about its expected value, in order to see whether voluntary private health insurance that reduces variation in spending might be able to be supplied. Using data from the World Health Survey for 14 developing countries, we find that out of pocket spending varies by income but that most spending usually occurs in income quintiles below the topmost quintile. We use estimates of the variance of total spending, hospital spending, physician spending, and outpatient drug spending about their means to generate estimates of the risk premia risk averse consumers migh...
Published: doi: 10.1377/hlthaff.28.6.1778 Health Aff November/December 2009 vol. 28 no. 6 1778-1787