Nigerian Economic Society
Hi Guest,
Home | Paper Submission | Signup |
      
Providing intellectual leadership in economic management in Nigeria
WELFARE EFFECTS OF HEALTH INSURANCE IN NIGERIA

WELFARE EFFECTS OF HEALTH INSURANCE IN NIGERIA

 

Abstract: The lower cost of health care services made possible by health insurance may lead to moral hazard. Moral hazard creates inefficiency in the health insurance market and loss in welfare. This paper investigates moral hazard and welfare effects of health insurance in Nigeria. A health care utilization model was estimated for moral hazard in the demand for health care using a generalized method of moments. Marshallian, Hicksian and Nyman’s estimates were used to determine the welfare effects of health insurance. Moral hazard in health insurance was evident in the value of price elasticity of demand for medical care consumption in health insurance, social and private health insurance with coefficients of 0.16, 0.14 and 0.0001 respectively. There were welfare gains (efficient moral hazard) from the Marshallian (85.8%), Hicksian (87.5%) and Nyman’s (87.3%) estimates against welfare loss (inefficient moral hazard) of -14.2%, 12.5% and -12.7%. Health insurance increased overall welfare in spite of the moral hazard. Therefore, government should, through appropriate policies, encourage the expansion of health insurance in Nigeria.

JEL classification: I130

Price: N500.00 | Add to cart
 

 

 

Login

Forget password? | Signup for Free!
Note: You must signup your email and create a password before you can register as an NES member
 

Latest News

63rd ANNUAL CONFERENCE ANNOUNCEMENT: CALL FOR ABSTRACTS

63rd ANNUAL CONFERENCE ANNOUNCEMENT 26 - 30 September 2022 Venue: Kano, Kano State, Nigeria ...read more


NEW EXECUTIVE COUNCIL OF THE NIGERIAN ECONOMIC SOCIETY

At the end of the Annual General Meeting (AGM) during the 62nd Annual Conference of the Society held...read more


NES 2021 PhD THESIS PRIZE AWARD WINNERS

Winners of the 2021 NES PhD Thesis Award Prize in Economics. 1st Prize - Shitile, Tersoo Shimonka...read more


Vacancy! Vacancy!! Vacancy!!!

The Nigerian Economic Society (NES) is looking for a highly qualified candidate who will fill the fo...read more


2021 Annual Conference Call for Nominations into the New Executive Council of the Nigerian Economic Society (NES)

At the Business Session of the 2021 Annual Conference of the NES which comes up in October 2021 both...read more


NES 2021 PhD THESIS PRIZE AWARD: Call for Submissions

NES PhD THESIS PRIZE AWARD: Call for Submissions The Executive Council of the Nigerian Economic So...read more


E-Mail Subscription

VoguePayVisaMasterCard