Moral Hazard in Health Insurance (Kenneth J. Arrow Lecture Series)

Moral hazard--the tendency to change behavior when the cost of that behavior will be borne by others--is a particularly tricky question when considering health care. Kenneth J. Arrow's seminal 1963 paper on this topic (included in this volume) was one of the first to explore the implication of moral hazard for health care, and Amy Finkelstein--recognized as one of the world's foremost experts on the topic--here examines this issue in the context of contemporary American health care policy. Drawing on research from both the original RAND Health Insurance Experiment and her own research, including a 2008 Health Insurance Experiment in Oregon, Finkelstein presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this. The volume also features commentaries and insights from other renowned economists, including an introduction by Joseph P. Newhouse that provides context for the discussion, a commentary from Jonathan Gruber that considers provider-side moral hazard, and reflections from Joseph E. Stiglitz and Kenneth J. Arrow. Moral Hazard - The Tendency To Change Behaviour When The Cost Of That Behaviour Will Be Borne By Others - Is A Particularly Tricky Question When Considering Health Care. Kenneth J. Arrow's Seminal 1963 Paper On This Topic (included In This Volume) Was One Of The First To Explore The Implication Of Moral Hazard For Health Care, And This Book Examines This Issue In The Context Of Contemporary American Health Care Policy. Moral Hazard In Health Insurance: Developments Since Arrow (1963) / Amy Finkelstein Finkelstein, Amy 13 -- Commentary / Jonathan Gruber Gruber, Jonathan 45 -- Commentary / Kenneth J. Arrow Arrow, Kenneth J. 55 -- Commentary / Joseph E. Stiglitz Stiglitz, Joseph E. 65 -- Discussion 73 -- Arrow (1963): Uncertainty And The Welfare Economics Of Medical Care / Kenneth J. Arrow Arrow, Kenneth J. 81. Amy Finkelstein ; With Kenneth J. Arrow, Jonathan Gruber, Joseph P. Newhouse, And Joseph E. Stiglitz. Includes Bibliographical References And Index. In this short and accessible book, Amy Finkelstein tackles the tricky question of moral hazard, which is the tendency to take risks when the cost will be borne by others. Kenneth J. Arrow's seminal 1963 paper, "Uncertainty and the Welfare Economics of Medical Care", included in the volume, was one of the first to explore the implication of moral hazard for healthcare, and, in this book, Finkelstein examines this issue in the context of contemporary American health care policy Amy Finkelstein examines the implications of moral hazard for health care in the context of contemporary American health care policy. She presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this.