Are the dimensions of private information more multiple than expected? Information asymmetries in the market of supplementary private health insurance in England

Our study reexamines standard econometric approaches for the detection of information asymmetries on insurance markets. We claim that evidence based on a standard framework with 2 equations, which uses potential sources of information asymmetries, should stress the importance of heterogeneity in the parameters. We argue that conclusions derived from this methodology can be misleading if the estimated coefficients in such an `unused characteristics' framework are driven by different parts of the population. We show formally that an individual's expected risk from the perspective of insurance, conditioned on certain characteristics (which are not used for calculating the risk premium), can equal the population's expectation in risk { although such characteristics are both related to risk and insurance probability, which is usually interpreted as an indicator of information asymmetries. We provide empirical evidence on the existence of information asymmetries in the market for supplementary private health insurance in the UK. Overall, we found evidence for advantageous selection into the private risk pool; ie people with lower health risk tend to insure more. The main drivers of this phenomenon seem to be characteristics such as income and wealth. Nevertheless, we also found parameter heterogeneity to be relevant, leading to possible misinterpretation if the standard `unused characteristics' approach is applied

Investigating the market potential for customised long term care insurance products

Previous economic research into long-term care (LTC) has mainly been focussed on one issue: the reasons why the LTC insurance market has not been successful. In this contribution, we analyse the prospects for a new type of insurance policy, which offers a top-up on the resources already available to the individual. We abstract from most problems inherent in LTC insurance markets and derive premium rates for various types of insurance policies. Generally, we find that the top-up option reduces premium rates considerably, to the point where it might be expected that a substantial number of people would take up policies, were they available

The decomposition of disease and disability life expectancies in England 1992-2004

ISBN 978-1-905752-23-2 www.cass.city.ac.uk "This paper originated in an independent report for the Department of Health. Any opinions expressed in this paper are my/our own and not necessarily those of my/our employer or anyone else I/we have discussed them with. In particular, the views expressed may not necessarily reflect the views or policies of the Department of Health. You must not copy this paper or quote it without my/our permission"

In sickness and in Health? Dynamics of health and cohabitation in the United Kingdom

The purpose of this paper is to analyse the dynamics of cohabitation and functional impairments among older people. Our research has three main aims. Firstly, we want to analyse the effects of cohabitation on disability. Secondly, we want to study time trends in disability and cohabitation jointly to explore relationships between the two. Thirdly, we examine socioeconomic differences -- as captured by educational attainment -- in disability. These issues are of great interest from several points of view. Firstly, they address an emerging theoretical debate concerning the effects of cohabitation on health and contribute to a sparse empirical literature on the topic. Secondly, our findings are highly policy relevant. Concerning long-term care for older people, for example, cohabitation is of double importance: firstly, since people who cohabit tend to be healthier, and secondly, since a partner is the typical provider of informal care. In a time where family structures among the old are likely to change (due to changes in life expectancy and divorce rates), our research will be useful for planning purposes. Finally, the model can be used to simulate populations of certain characteristics. Hence, it can be used to derive insurance premiums in order to reduce the problem of selection effects in the market for long-term care insurance. Using the British Household Panel Survey dataset, we apply panel data and simulation techniques to exploit the longitudinal characteristic of the panel. We estimate the two dependent variables -- cohabitation status and disability -- jointly, and allow for time trends, age effects and unobserved heterogeneity. We find that there are systematic differences between single and cohabiting people so that a cross sectional analysis would overestimate the causal relationship; nevertheless, cohabitation has a strong and positive effect on health. Furthermore, we find that bereavement of a partner has a significant negative impact on health

The Role of Private Finance in Paying for Long Term Care

An ageing population and increased longevity means that long term care will become progressively more expensive. In 2009 the Government published a Green Paper on future funding options and a White Paper in 2010. This article considers the role of private finance products under the ‘Partnership’ option. It finds that few households are able to pay for LTC based on income and savings but the number increases if housing assets are included. We show that products can be devised for a range of circumstances, although state support would need to continue. We propose a simplified means testing system based on a combination of income and assets

A study into the detrimental effects of obesity on life in the UK

This paper is an investigation into the effect of excess body fat on mortality within the UK. Health surveys from the UK are used to apply a Cox proportional hazards model to UK-specific data (Health and Lifestyle Survey, 1985) to provide an analysis, at various ages, of the effects of obesity on life expectancy. We explore the issues by replicating and extending US research with UK data using both Body Mass Index(BMI) and Waist to Height (WTH) as obesity measures. We measure the impact of obesity in adults on life expectancy and find that mortality risk associated with obesity in the UK is similar to that found in US studies. However, importantly, we also show WTH to be a better indicator of mortality risk than BMI. Our results include the number of years of life lost (YLL) for UK lives in various severitycategories of obesity compared with lives of the same age at optimum levels of BMI or WTH. The research emphasizes how important it is for the government to promote healthy lifestyles in order to avoid premature death

Renormalized mean-field t-J model of high-Tc superconductivity: comparison with experiment

Using an advanced version of the renormalized mean-field theory (RMFT) for the t-J model, we examine spin-singlet superconducting (SC) state of $d_{x^2 - y^2}$-symmetry. Overall doping dependence of the SC gap magnitude is in good agreement with experimental results for $\text{Bi}_{2}\text{Sr}_{2}\text{Ca} \text{Cu}_2 \text{O}_{8 + \delta}$ (BSCCO) and $\text{La}_{2-x}\text{Sr}_{x}\text{Cu} \text{O}_{4}$ (LSCO) compounds at the optimal doping and in the overdoped regime. We also calculate the dispersion relation for the Bogoliubov quasiparticles and compare our findings both with the angle resolved photoemission data for the cuprates, as well as with the variational Monte Carlo and other mean-field studies. Within the method proposed by Fukushima [cf. Phys. Rev. B \textbf{78}, 115105 (2008)], we analyze different forms of the t-J Hamiltonian, i.e. modifications caused by the form of exchange interaction, and by the presence of three-site terms. It is shown that although the former has a small influence, the latter suppresses strongly the superconductivity. We also analyze the temperature dependence of the gap magnitude and compare the results with those of the recently introduced finite-temperature renormalized mean-field theory (TRMFT) of Wang et al. [cf. Phys. Rev. B \textbf{82}, 125105 (2010)].Comment: 7 pages, 6 figures, 2 tables. Submitted to Physical Review

Anomalous impurity effects in nonadiabatic superconductors

We show that, in contrast with the usual electron-phonon Migdal-Eliashberg theory, the critical temperature Tc of an isotropic s-wave nonadiabatic superconductor is strongly reduced by the presence of diluted non-magnetic impurities. Our results suggest that the recently observed Tc-suppression driven by disorder in K3C60 [Phys. Rev. B vol.55, 3866 (1997)] and in Nd(2-x)CexCuO(4-delta) [Phys. Rev. B vol.58, 8800 (1998)] could be explained in terms of a nonadiabatic electron-phonon coupling. Moreover, we predict that the isotope effect on Tc has an impurity dependence qualitatively different from the one expected for anisotropic superconductors.Comment: 10 pages, euromacr.tex, europhys.sty, 6 figures. Replaced with accepted version (Europhysics Letters

Zeeman response of d-wave superconductors: Born approximation for impurity and spin-orbit scattering potentials

The effects of impurity and spin-orbit scattering potentials can strongly affect the Zeeman response of a d-wave superconductor. Here, both the phase diagram and the quasiparticle density of states are calculated within the Born approximation and it is found that the spin-orbit interaction influences in a qualitatively different way the Zeeman response of d-wave and s-wave superconductors.Comment: 19 pages, 6 eps figures, submitted to Physica

Gapped optical excitations from gapless phases: imperfect nesting in unconventional density waves

We consider the effect of imperfect nesting in quasi-one-dimensional unconventional density waves in the case, when the imperfect nesting and the gap depends on the same wavevector component. The phase diagram is very similar to that in a conventional density wave. The density of states is highly asymmetric with respect to the Fermi energy. The optical conductivity at T=0 remains unchanged for small deviations from perfect nesting. For higher imperfect nesting parameter, an optical gap opens, and considerable amount of spectral weight is transferred to higher frequencies. This makes the optical response of our system very similar to that of a conventional density wave. Qualitatively similar results are expected in d-density waves.Comment: 8 pages, 7 figure