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Policymakers subsidizing health insurance often face uncertainty about future market prices. We study the implications of one policy response: linking subsidies to prices, to target a given post-subsidy premium. We show that these price-linked subsidies weaken competition, raising prices for the...
Persistent link: https://www.econbiz.de/10012455577
Subsidies in many health insurance programs depend on prices set by competing insurers -- as prices rise, so do subsidies. We study the economics of these "price-linked" subsidies compared to "fixed" subsidies set independently of market prices. We show that price-linked subsidies weaken price...
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Policymakers subsidizing health insurance often face uncertainty about future market prices. We study the implications of one policy response: linking subsidies to prices, to target a given post-subsidy premium. We show that these price-linked subsidies weaken competition, raising prices for the...
Persistent link: https://www.econbiz.de/10012964396
Persistent link: https://www.econbiz.de/10001481180
Persistent link: https://www.econbiz.de/10001791053
As a result of the BoJ's large-scale asset purchases, the consolidated Japanese government borrows mostly at the floating rate from households and invests in longer-duration risky assets to earn an extra 3% of GDP. We quantify the impact of Japan's low-rate policies on its government and...
Persistent link: https://www.econbiz.de/10014436981