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The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

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Winners and Losers of Universal Health Insurance: A Macroeconomic Analysis

Wung Lik Ng / Yin-Chi Wang
  • Corresponding author
  • Department of Economics, National Taipei University – Main Campus, Social Science Building 3F04, No.151, Daxue Rd., Sanxia Dist., New Taipei City 23741, Taiwan
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Published Online: 2019-10-22 | DOI: https://doi.org/10.1515/bejte-2018-0064


This paper studies the supply-side distortions and the consequences resulted from provider-side cost containing universal health insurance (UHI) scheme. A two-sector overlapping generations model of endogenous physicians’ specialty choice is presented. We find that the general public is possible to be benefited from the cost containing UHI if the quality of medical services does not deteriorate too much. However, physicians in the medical service sector suffer from such scheme and end up earning lower incomes, regardless of one’s specialty and talent. Inequality among physicians also increases.

Keywords: overlapping generations model; human capital; inequality; welfare

JEL Classification: E13; I11; J24


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About the article

Published Online: 2019-10-22

Citation Information: The B.E. Journal of Theoretical Economics, Volume 20, Issue 1, 20180064, ISSN (Online) 1935-1704, DOI: https://doi.org/10.1515/bejte-2018-0064.

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