a b s t r a c tIn a quantitative model of Social Security with endogenous health, I argue that Social Security increases the aggregate health spending of the economy because it redistributes resources to the elderly whose marginal propensity to spend on health is high. I show by using computational experiments that the expansion of US Social Security can account for over a third of the dramatic rise in US health spending from 1950 to 2000. In addition, Social Security has a spill-over effect on Medicare. As Social Security increases health spending, it also increases the payments from Medicare, thus raising its financial burden.
This paper studies the impact of social insurance on private insurance and individual welfare in a dynamic general equilibrium model with uncertain medical expenses and individual health insurance choices. I find that social insurance (modeled as a combination of the minimum consumption floor and the Medicaid program) crowds out private health insurance coverage, and this crowd-out is important for understanding the welfare consequences of social insurance. When the crowding out effect on private insurance is taken into account, the welfare gain from social insurance becomes substantially smaller and under some certain conditions it becomes a welfare loss. The intuition for these results is that the crowding out effect partially offsets the insurance benefits provided by social insurance. The findings of the paper suggest that it is important to consider the endogenous responses on private insurance choices when examining any social insurance policy reform. They also imply that the existence of social insurance programs may be one reason why some Americans do not buy any health insurance.
There is a great deal of interest concerning how e-commerce in China can be developed in sustainable ways. Answering this question requires not only the strategic management at the aggregate level, but also developing a micro framework that can effectively understand the cognitive-behavioral pathway of consumers in various online contexts. This paper focuses on the “Double Eleven” Global Online Shopping Carnival (GOSC) in China and attempts to investigate the determinants of consumers’ behaviors of shopping platform usage. The distinguishing feature of this study is that we define GOSC as a unique scenario compared to normal online shopping context, where consumers’ emotional state towards such an event plays a larger role in determining behaviors. Based on Cognitive Emotion Theory (CET), the main findings of this paper suggest that (1) consumers’ behaviors of online platform usage can be affected by both cognitions related factors, including price value, gamification and personalized services, and by emotional state such as having arousal and being pleasured; (2) cognition has an effect on emotional state, such as the positive effect of price value on arousal and pleasure or gamification on arousal. Our study, therefore, has highlighted a number of key points to the sustainable development of GOSC. Limitations and further research directions are also discussed.
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