Direct evidence of risk aversion as a source of advantageous selection in health insurance
Using the self-stated degree of risk aversion regarding health from the GSOEP we find some evidence for risk aversion being a source of advantageous selection. Risk averse men more often procure supplementary insurance for hospital visits despite needing the additional coverage less.
Schmitz, H. (2011), Direct evidence of risk aversion as a source of advantageous selection in health insurance. Economics Letters, 113, 2, 180-182