Elasticities of market shares and social health insurance choice in Germany: a dynamic panel data approach.
In 1996, free choice of health insurers was introduced to the German social health insurance system. One objective was to increase efficiency through competition. A crucial precondition for effective competition among health insurers is that consumers search for lower-priced health insurers. We test this hypothesis by estimating the price elasticities of insurers' market shares. We use unique panel data and specify a dynamic panel model to explain changes in market shares. Estimation results suggest that short-run price elasticities are smaller than previously found by other studies. In the long-run, however, estimation results suggest substantial price effects.
Tamm
Marcus
M
RWI Essen, Essen, Germany. tamm@rwi-essen.de
Tauchmann
Harald
H
Wasem
Jürgen
J
Gress
Stefan
S
D003365:Costs and Cost Analysis; D004470:Economics, Medical; D005858:Germany; D006801:Humans; D017059:Models, Econometric; D009313:National Health Programs / Q000191:economics*