Testing for Adverse Selection into Private Medical Insurance

We develop a test for adverse selection and use it to examine privatehealth insurance markets. In contrast to earlier papers that consider apurely private system or a system in which private insurance supplementsa public system, we focus our attention on a system where privately fundedhealth care is substitutive of the publicly funded one. Using a model ofcompetition among insurers, we generate predictions about the correlationbetween risk and the probability of taking private insurance under bothsymmetric information and adverse selection. These predictions constitutethe basis for our adverse selection test. The theoretical model is also usefulto conclude that the setting that we focus on is especially attractive to testfor adverse selection. Using the British Household Panel Survey, we findevidence that adverse selection is present in this market. We develop a test for adverse selection and use it to examine privatehealth insurance markets. In contrast to earlier papers that consider apurely private system or a system in which private insurance supplementsa public system, we focus our attention on a system where privately fundedhealth care is substitutive of the publicly funded one. Using a model ofcompetition among insurers, we generate predictions about the correlationbetween risk and the probability of taking private insurance under bothsymmetric information and adverse selection. These predictions constitutethe basis for our adverse selection test. The theoretical model is also usefulto conclude that the setting that we focus on is especially attractive to testfor adverse selection. Using the British Household Panel Survey, we find evidence that adverse selection is present in this market

Relay synchronization in multiplex networks

Relay (or remote) synchronization between two not directly connected oscillators in a network is an important feature allowing distant coordination. In this work, we report a systematic study of this phenomenon in multiplex networks, where inter-layer synchronization occurs between distant layers mediated by a relay layer that acts as a transmitter. We show that this transmission can be extended to higher order relay configurations, provided symmetry conditions are preserved. By first order perturbative analysis, we identify the dynamical and topological dependencies of relay synchronization in a multiplex. We find that the relay synchronization threshold is considerably reduced in a multiplex configuration, and that such synchronous state is mostly supported by the lower degree nodes of the outer layers, while hubs can be de-multiplexed without affecting overall coherence. Finally, we experimentally validated the analytical and numerical findings by means of a multiplex of three layers of electronic circuits.the analytical and numerical findings by means of a multiplex of three layers of electronic circuits