Mitra, S and Jokung, Octave
(2019)
Health Care Investment: The Case of Multiple Sources Of Risk.
Asia-Pacific Financial Markets, 27 (2).
pp. 231-255.
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Abstract
<jats:title>Abstract</jats:title> <jats:p>This paper analyses the effect of a bivariate risk on the optimal expenses in health care and gives conditions under which any change in the bivariate risk with respect to the <jats:inline-formula><jats:alternatives><jats:tex-math>$$\left( {s_{1} ,s_{2} } \right) -$$</jats:tex-math><mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML"><mml:mrow><mml:mfenced><mml:mrow><mml:msub><mml:mi>s</mml:mi><mml:mn>1</mml:mn></mml:msub><mml:mo>,</mml:mo><mml:msub><mml:mi>s</mml:mi><mml:mn>2</mml:mn></mml:msub></mml:mrow></mml:mfenced><mml:mo>-</mml:mo></mml:mrow></mml:math></jats:alternatives></jats:inline-formula>increasing concave order decreases the expenses in health care. Increasing risk increases the demand for health care for risk-averse and prudent individuals in the multivariate sense. Positive (negative) dependence increases (decreases) expenses in health care. Increasing the correlation produces the same results. Furthermore, the uncertainty surrounding the effectiveness of medical treatments amplifies the effect of any change in wealth and health risks. We also present some policy implications.</jats:p>
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Dependence, Health uncertainty, Health care, Pair-wise risk aversion, Increase in risk, Stochastic dominance |
| Depositing User: | Symplectic Admin |
| Date Deposited: | 28 Oct 2019 09:55 |
| Last Modified: | 19 Jan 2023 00:21 |
| DOI: | 10.1007/s10690-019-09291-3 |
| Related URLs: | |
| URI: | https://livrepository.liverpool.ac.uk/id/eprint/3059731 |
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