Contracting with Limited Commitment: Evidence from Employment-Based Health Insurance Contracts

@inproceedings{Crocker2003ContractingWL,
  title={Contracting with Limited Commitment: Evidence from Employment-Based Health Insurance Contracts},
  author={Keith J. Crocker and John R. Moran},
  booktitle={The Rand journal of economics},
  year={2003}
}
  • K. Crocker, J. Moran
  • Published in The Rand journal of economics 1 July 2002
  • Business, Medicine
Impediments to worker mobility serve to mitigate the attrition of healthy individuals from employer-sponsored insurance pools, thereby creating a de facto commitment mechanism that allows for more complete insurance of health risks than would be possible in the absence of such frictions. Using data on health insurance contracts obtained from the 1987 National Medical Expenditure Survey, we find that the quantity of insurance provided is positively related to the degree of worker commitment… Expand
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