Too Busy to Be Cured

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Co-sponsored by Peking University and the Asia Health Policy Program

Time cost of healthcare is important but is largely overlooked in the literature. This paper investigates how time cost affects the healthcare usage in both China and the US. Using the retirement age policy in both countries, we first employ a Regression Discontinuity Design (RDD) and show that the hospitalization rate persistently increases by 20-30 percent just after retirement age. The effects are larger and more significant among the people with higher time costs prior to retirement. Then, we use the school starting date and provide further significant evidence of the impact of time cost on hospitalization among the age-eligible children. These results underline the remarkable impact of time cost on healthcare usage and provide a more comprehensive picture of moral hazard in health insurance.

Dr HUANG Wei is an Associate Professor at the National School of Development (NSD), Peking University. Previously, he was an assistant professor at Emory University and National University of Singapore. He received his Ph.D. in economics from Harvard in 2016. His research fields include public economics, labor economics, and health economics. His research work has been published in journals such as Review of Economic and Statistics, American Economic Journal: Applied Economics, Nature, Journal of Economic Perspectives, Journal of Development Economics, Journal of Labor Economics, etc. He is a co-editor for Economics of Transition.