Research Article
Why Did Americans Reject Compulsory Health Insurance after WWI? An Application of the Lifecycle Model
Table 1
Comparison of results, low earnings profile (
,
).
| | Expected lifetime utility for |
| Initial wealth ($) | No insurance over lifetime | IOOF insurance for first year only | IOOF insurance for first 3 years only | IOOF insurance for first 5 years only | IOOF insurance for first 7 years only | IOOF insurance for 40 years | AALL insurance (4.0% premium) | AALL insurance (2.6% premium) | AALL insurance (2.1% premium) |
| 0 | āā | 6.0484 | 6.0487 | 6.0488 | 6.0488 | 6.0481 | 6.0206 | 6.0420 | 6.0495 | 2 | 3.9284 | 6.0488 | 6.0491 | 6.0491 | 6.0491 | 6.0484 | 6.0209 | 6.0423 | 6.0497 | 4 | 6.0129 | 6.0492 | 6.0494 | 6.0495 | 6.0495 | 6.0488 | 6.0212 | 6.0425 | 6.0500 | 6 | 6.0420 | 6.0495 | 6.0498 | 6.0498 | 6.0498 | 6.0491 | 6.0215 | 6.0428 | 6.0503 | 8 | 6.0458 | 6.0499 | 6.0501 | 6.0501 | 6.0501 | 6.0495 | 6.0218 | 6.0431 | 6.0505 | 10 | 6.0473 | 6.0502 | 6.0504 | 6.0505 | 6.0505 | 6.0498 | 6.0220 | 6.0433 | 6.0508 | 22 | 6.0513 | 6.0521 | 6.0522 | 6.0523 | 6.0523 | 6.0516 | 6.0236 | 6.0449 | 6.0523 | 44 | 6.0552 | 6.0553 | 6.0553 | 6.0553 | 6.0553 | 6.0546 | 6.0264 | 6.0475 | 6.0550 | 46 | 6.0555 | 6.0555 | 6.0555 | 6.0555 | 6.0555 | 6.0548 | 6.0266 | 6.0478 | 6.0552 | 48 | 6.0558 | 6.0558 | 6.0558 | 6.0558 | 6.0558 | 6.0551 | 6.0269 | 6.0480 | 6.0554 | 50 | 6.0561 | 6.0561 | 6.0560 | 6.0560 | 6.0560 | 6.0554 | 6.0271 | 6.0483 | 6.0557 | 120 | 6.0651 | 6.0648 | 6.0643 | 6.0642 | 6.0642 | 6.0635 | 6.0351 | 6.0560 | 6.0634 |
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Note: values in boldface show the highest expected lifetime utility for a given value of initial wealth across the given insurance options.
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