DP2513 The Demand for Private Medical Insurance in the UK: A Cohort Analysis

Author(s): Carol Propper , Hedley Rees

Publication Date: July 2000

Keyword(s): Health Insurance Demand , Public And Private Sector Interactions

JEL(s): I10

Programme Areas: Public Policy

Link to this Page: www.cepr.org/pubs/dps/DP2513.asp

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.