Interdependent Risks, Prevention and Insurance. The Case of the Health Market

Authors

  • Samuel G. Berlinski Universidad de San Andrés, Buenos Aires, Argentina image/svg+xml

Keywords:

externalities, communicable diseases, prevention, insurance, health economics

Abstract

It is usually found in the literature on externalities references to the case of communicable diseases and vaccination. However, neither the nature and importance of the phenomenon have frequently been properly addressed, nor a specific and complete proof of the public good case has been provided. Within the framework of an uncertainty model, this paper studies the phenomenon of interdependent risks and prevention. In an economy with insurance markets it is proved that, with state dependent utility functions and/or incomplete markets, the case of externality of communicable diseases holds.

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References

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Published

1996-04-30

How to Cite

Berlinski, S. G. (1996). Interdependent Risks, Prevention and Insurance. The Case of the Health Market. Economic Analysis Review, 11(1), 73–88. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/150

Issue

Vol. 11 No. 1 (1996)

Section

Articles

License

Copyright (c) 1996 Samuel G. Berlinski

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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