This paper considers a model of defensive medicine where doctors are imperfect agents of insured patients. A national insurer subsidises both curative and preventive medical care consumed by risk averse patients. We show that in such an environment, the optimal liability regime is similar to the no-fault systems of Sweden and New Zealand where the doctor faces zero liability. The reason is that...

The Omnibus Budget Reconciliation Act of 1990 introduced a refundable tax credit for low-income working families who purchased health insurance coverage for their children. This health insurance tax credit (HITC) existed during tax years 1991, 1992, and 1993, and was then rescinded. We use Current Population Survey data and a difference-in-differences approach to estimate the HITC’s effect on p...

We estimate the effect of alcohol consumption on mortality using the minimum drinking age in a regression discontinuity design. We find large and immediate increases in drinking at age 21, including a 21 percent increase in recent drinking days. We also find a discrete 9 percent increase in the mortality rate at age 21, primarily due to motor vehicle accidents, alcohol-related deaths, and suici...

We combine survey responses, network data, and medical records in order to examine how friends affect the decision to get vaccinated against influenza. The random assignment of undergraduates to residential halls at a large private university generates exogenous variation in exposure to the vaccine, enabling us to credibly identify social effects. We find evidence of positive peer influences on...

I provide new evidence on the relative “powers” of contraception and abortion policy in effecting the dramatic social transformations of the 1960s and 1970s. Trends in sexual behavior suggest that young women’s increased access to the birth control pill fueled the sexual revolution, but neither these trends nor difference-in-difference estimates support the view that this also led to substantia...

This study measures the monetary value households place on preventing malaria in Tigray, Ethiopia. We estimate a household demand function for a hypothetical malaria vaccine and compute the value of preventing malaria as the household’s maximum willingness to pay to provide vaccines for all family members. This is contrasted with the traditional costs of illness (medical costs and lost producti...

We report a vehicle-fleet experiment with an economic incentive for keeping within speed limits using a speed-alert device. A traffic insurance scheme was simulated with a monthly bonus during two months reduced by a non-linear speeding penalty. Participants were randomly assigned into four treatment and two control groups. A third control group consists of drivers who had the device and were m...

New empirical evidence shows substantial heterogeneity in the altruism of healthcare providers. Spurred by this evidence, we build a spatial quality competition model with altruism heterogeneity. We fi nd that more altruistic healthcare providers supply relatively higher quality levels and position themselves closer to the center. Whether the social planner prefers more or less horizontal diff ...