Moral hazard in health care: case study of Taiwan's national health insurance
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Abstract
My research examines the moral hazard phenomenon under Taiwan's National Health Insurance system theoretically as well as empirically. The objective is to investigate the effects of universal health insurance on individual lifestyle behavior such as smoking and alcohol consumption. In the analytical section, I incorporate the individual's copayment rate, the premium, and the payroll tax rate in a moral-hazard model of national health care insurance plan. The two-stage for individual decision is applied to an extension of the moral hazard model originally proposed by Ehrlich and Becker (1972) and ...
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