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Chapter

I

II

III

CONTENTS

Page

EXECUTIVE SUMMARY........................................................................................... ix

INTRODUCTION ..........................................................................................................1

DEFINITION AND VARIATION OF ELASTICITY MEASURES.............................5

  • A.

    ALTERNATIVE MEASURES OF DEMAND ELASTICITY...............................5

    • 1.

      Own-Price Elasticity ........................................................................................5

    • 2.

      Cross-Price Elasticity.......................................................................................5

    • 3.

      Income Elasticity .............................................................................................6

B. FACTORS THAT CONTRIBUTE TO VARIATION IN ELASTICITY ESTIMATES............................................................................................................6

PRICE ELASTICITY OF DEMAND FOR HEALTH INSURANCE...........................9

  • A.

    EMPLOYER OFFER...............................................................................................9

    • 1.

      Range of Estimates ..........................................................................................9

    • 2.

      Subpopulation Differences.............................................................................12

    • 3.

      Methodological Issues ...................................................................................14

  • B.

    EMPLOYEE TAKE UP ........................................................................................15

    • 1.

      Range of Estimates ........................................................................................15

    • 2.

      Subpopulation Differences.............................................................................17

    • 3.

      Methodological Issues ...................................................................................18

  • C.

    EMPLOYEE CHOICE OF PLAN.........................................................................19

    • 1.

      Range of Estimates ........................................................................................19

    • 2.

      Subpopulation Differences.............................................................................23

    • 3.

      Methodological Issues ...................................................................................24

  • D.

    INDIVIDUAL DEMAND IN THE NONGROUP MARKET ..............................25

    • 1.

      Range of Estimates ........................................................................................25

    • 2.

      Subpopulation Differences.............................................................................27

    • 3.

      Methodological Issues ...................................................................................27

iii

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