NBER Working Paper 28430; Revise and resubmit, American Economic Journal: Economic Policy
Abstract: Health insurance plans increasingly pay for expenses only beyond a large annual deductible. This paper explores the implications of deductibles that reset over shorter timespans. We develop a model of insurance demand between two actuarially equivalent deductible policies, in which one deductible is larger and resets annually and the other deductible is smaller and resets biannually. Our model incorporates borrowing constraints, moral hazard, mid-year contract switching, and delayable care. Calibrations using claims data show that the liquidity benefits of resetting deductibles can generate welfare gains of 6-10% of premium costs, particularly for individuals with borrowing constraints.
Abstract: This paper examines the effect of the New Rural Pension Scheme (NRPS) on labor supply among the aged population in rural China. Using a ‘reversed’ difference-in-difference specification, I find the introduction of NRPS has increased the (intensive) labor supply for both pensioners and contributors by more than ten percent. Heterogeneity analyses suggest that the potential mechanisms are different for the pensioner and the contributor. For pensioners, the program has elevated effective labor productivity, through health improvement and credit constraint alleviation, which lead them to work more. On the other hand, the pension contributor, especially those who are hand-to-mouth, increases labor supply because the annual contribution is an additional financial burden to them.
"GiniInc: A Stata Package for Measuring Inequality from Incomplete Income and Survival Data", The Stata Journal, 2018, (with Guido Alfani, Chiara Gigliarano, and Marco Bonetti)
Abstract: Often, observed income and survival data are incomplete because of left- or right-censoring or left- or right-truncation. Measuring inequality (for instance, by the Gini index of concentration) from incomplete data like these will produce biased results. We describe the package giniinc, which contains three independent commands to estimate the Gini concentration index under different conditions. First, survgini computes a test statistic for comparing two (survival) distributions based on the nonparametric estimation of the restricted Gini index for right-censored data, using both asymptotic and permutation inference. Second, survbound computes nonparametric bounds for the unrestricted Gini index from censored data. Finally, survlsl implements maximum likelihood estimation for three commonly used parametric models to estimate the unrestricted Gini index, both from censored and truncated data. We briefly discuss the methods, describe the package, and illustrate its use through simulated data and examples from an oncology and a historical income study.
The package is available to download here or by simply typing - ssc install giniinc - in Stata.