Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We estimate the causal impact of having full health insurance on healthcare expenditures. We take advantage of a unique quasi‐experimental setup in which deductibles and co‐payments were zero in a managed care plan and nonzero in regular insurance, until a policy change forced all individuals with an active plan to cover a minimum amount of their expenses. Using panel data and a nonlinear difference‐in‐differences strategy, we find a demand elasticity of about −0.14 comparing full insurance with the cost‐sharing model and a significant upward shift in the likelihood to generate costs. Copyright © 2015 John Wiley & Sons, Ltd.