demand elasticity and describes factors that may contribute to variation in elasticity estimates.
Chapters III through V present syntheses of the research literature estimating, respectively, the
price elasticity of demand for health insurance, the price elasticity of demand for covered health
care services, and the income elasticity of demand for health insurance and services. To the
extent possible, each chapter addresses different products separately. With respect to each type
of elasticity, we describe the range of estimates, compare estimates for specific subpopulations,
and identify common methodological challenges in estimating elasticity.
Chapter VI reviews applications of elasticity estimates and summarizes the policy
implications that researchers have drawn. The main methodological challenges identified earlier
are summarized in Chapter VII, as well as approaches that researchers have used to address some
of these challenges. Finally, Chapter VIII identifies remaining gaps in the literature. This
chapter draws from the literature review as well as early discussions with some users of elasticity
estimates who were involved in another part of this project, assessing stakeholder needs.