蝌蚪网 Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Public and Private Provision of Information in Market-Based Public Programs: Evidence from Advertising in Health Insurance Marketplaces
蝌蚪网 Journal: Economic Policy
vol. 17,
no. 2, May 2025
(pp. 84–121)
Abstract
This paper studies government and private advertising in market-based public programs. In a model of advertising, we first examine when government advertising increases welfare. Then, we estimate the effects of advertising on consumer demand and assess their welfare effects in the Affordable Care Act health insurance marketplaces. We find government advertising increases overall enrollment and enhances welfare. By contrast, the market expansion effect of private advertising is modest at most. Although private advertising increases demand for insurers in certain specifications, it is not a very efficient tool to induce consumers to select insurers with better plans due to rent-seeking competition.Citation
Aizawa, Naoki, and You Suk Kim. 2025. "Public and Private Provision of Information in Market-Based Public Programs: Evidence from Advertising in Health Insurance Marketplaces." 蝌蚪网 Journal: Economic Policy 17 (2): 84–121. DOI: 10.1257/pol.20220352Additional Materials
JEL Classification
- G22 Insurance; Insurance Companies; Actuarial Studies
- G52 Household Finance: Insurance
- H51 National Government Expenditures and Health
- I13 Health Insurance, Public and Private
- M37 Advertising