In Chapter 2, building on the results of the first chapter, I explore the heterogeneity in the impact of health insurance through a semiparametric model.
Since URBMI is a national program covering a wide range of subpopulations, observed and unobserved individual characteristics may play an important role in determining the response of an individual to insurance coverage.
In the second project, I look at the role of tax subsidies in the supply of health care.
In particular, I exploit variations in state and federal level tax policies in the U.
I exploit the variation in tax policy across states and over time to identify the effect of tax subsidy on the ownership choice of hospitals.
I further differentiate behavior between nonprofit versus for-profit hospitals, including cost, provision of undercompensated care as well as quality.
I also extend my examination to consider the labor market effects of URBMI.
Since this program provides insurance coverage outside of employment status, it will potentially increase an individual's mobility between jobs and impact the retirement decision.
It also increases efficiency in medical spending by inducing the use of preventative care and reducing the probability of hospitalization.
In terms of health outcomes, insurance coverage has a significant impact on subjective self-ratings in health and happiness.