Becker Friedman Institute
for Research in Economics
The University of Chicago

Research. Insights. Impact. Advancing the Legacy of Chicago Economics.

Health Economics

The Health Sector and the Economy 2017

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The second annual conference organized by the Health Economics Initiative will bring together scholars pursuing research that combines theoretical and empirical analysis to examine the function of health care markets and the impact of health policies. The conference will also aim to foster a community for collaboration and evaluation of current research.

The Health Sector and the Economy 2017 conference will feature the following topics and presenters:


Estimating Equilibrium in Health Insurance Exchanges: Price Competition and Subsidy Design under the ACA

Pietro Tebaldi

To design premium subsidies in a health insurance market it is necessary to estimate consumer demand, cost, and study how different subsidy schemes affect insurer's incentives. I combine data on household-level enrollment and plan-level claims from the California Affordable Care Act insurance exchange with a model of insurance demand and insurers' competition to assess equilibrium outcomes under alternative subsidy designs. I estimate that younger households are significantly more price sensitive and cheaper to cover.

Wedges, Labor Market Behavior, and Health Insurance Coverage Under the Affordable Care Act

Trevor S. Gallen and Casey B. Mulligan

The Affordable Care Act's taxes, subsidies, and regulations significantly alter terms of trade in both goods and factor markets. We use an extended version of the classic Harberger model to predict and quantify consequences of the Affordable Care Act for the incidence of health insurace coverage and patterns of labor usage. If and when the new exchange plans are competitive with employer-sponsored insurance (ESI), more than 21 million people will leave ESI as a consequence of the law.