Nigerian Economic Society
Hi Guest,
Home | Paper Submission | Signup |
Providing intellectual leadership in economic management 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




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

2020 NES PhD Thesis Prize Award Winners

The Executive Council of the NES is pleased to announce the winners of 2020 NES Thesis Prize Award. more

NES Webinar on Covid-19 and the Nigerian Economy - Press Release

The Nigerian Economic Society (NES) in its Monthly Webinar series on the Nigerian economy hosted more

NES PhD THESIS PRIZE AWARD: Call for Submissions

The Executive Council of the Nigerian Economic Society (NES) hereby announces the call for more

Policy Brief on The Nigerian Fuel Subsidy Puzzle: Facts, Fallacies and the Way Forward

Background The issue of the appropriate pricing of petroleum products in Nigeria, of which fuel more

2019 Election of New Council of the Nigerian Economic Society

The Executive Council of NES hereby informs its members that at the Business Session of 2019 Annual more

2019 Nigerian Economic Society Annual Public Lecture Announcement

The Executive Council of NES has the pleasure to announce it's 2019 Annual Public Lecture with the more

E-Mail Subscription