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STICERD Industrial Organisation Seminars

Estimating Equilibrium in Health Insurance Exchanges: Price Competition and Subsidy Design under the ACA

Pietro Tebaldi (University of Chicago)

Monday 17 October 2016 12:30 - 14:00

This event will take place online.

Many of our seminars and public events this year will continue as online seminars or as online and in person. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, current restrictions mean in-person seminars are only open to members of the LSE community (those with a valid LSE ID card).

Those unable to join the seminars in-person are welcome to participate via zoom.


About this event

To design premium subsidies in a health insurance market it is necessary to estimate consumer demand and study how different subsidy schemes affect insurers’ incentives. Combining data from the Californian ACA marketplace with a model of insurance demand and insurers’ competition, I identify and estimate demand and cost primitives, and assess equilibrium outcomes under alternative subsidy designs. I find that vouchers are less distortionary than subsidies calculated from market premiums, and — given age-heterogeneity in demand and cost — tailoring subsidies to age leads to an equilibrium where all buyers are better off and per-person public spending is lower.

Industrial Organisation seminars are held on Mondays in term time at 12:30-14:00, ONLINE, unless specified otherwise.

Seminar organiser: Alessandro Gavazza.

For further information please contact Lubala Chibwe, either by email: l.chibwe@lse.ac.uk.

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This event will take place online.