Carol Propper, Hedley Rees* and Katherine Green
*Department of Economics, University of Bristol
This paper examines the determinants of the demand for private health insurance in the UK from 1978 to 1996. The focus is the impact of public and private sector quality on demand. Use of a pseudo-cohort panel allows examination of generational change and the investigation of dynamics. The results indicate that there has been generational change. Further, changes in the contractual status of senior doctors employed in the public sector has had impact on demand for the private alternative. Once these factors are taken into account there is limited evidence of habit in purchase.
Published in Economic Journal 111 (471) C180-C200 (2001)