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Essays on Health Insurance, Household Liquidity, and the Demand for Medical Care

Abstract

My dissertation uses empirical methods to investigate the determinants of medical care demand and to understand how government action affects population health. The first chapter looks at a recent health insurance expansion in the state of Massachusetts and finds that, in the short run, the newly insured seek more hospital care. In the long run, as the supply of primary care physicians expands, care may shift to more efficient points of services. The second and third chapters examine the effect of cash liquidity on the demand for medical care and health insurance. I find liquidity to play an important role in determining the timing of health investments and that the uninsured are more sensitive to liquidity constraints, likely because they face higher prices. Cash-on hand is also shown to be an important fact in maintaining continuous private health insurance coverage

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