TIME SPENT ON WAITING LISTS FOR MEDICAL-CARE - AN INSURANCE APPROACH

In this paper, we develop a simple model of the benefits and costs of being on a waiting List. The model shows that complex factors are in o peration, implying that a shorter waiting time need not necessarily be preferred to a longer waiting time. We also present an empirical stud y, where a sample of Swedes are offered the possibility of purchasing private insurance, thus reducing waiting time for surgery beyond the t hree-month guarantee offered by the public sector health care system. Respondents could choose between two insurance contracts. A 'spike' mo del, where the probability of a zero WTP is strictly positive, was dev eloped and estimated to obtain demand functions for private insurance. (C)1998 Elsevier Science B.V. All rights reserved.