The Economics Department

Dr. Cabral is the 2018 recipient of the Arrow Award

Fri, May 11, 2018
Dr. Cabral is the 2018 recipient of the Arrow Award
Dr. Marika Cabral

Dr. Marika Cabral has been selected as the winner of the Arrow Award, which is awarded annually by the International Health Economics Association for the best paper in health economics.  Dr. Cabral won the award on the basis of her paper, “Claim Timing and Ex Post Adverse Selection,” which was published in the Review of Economic Studies last year.

Below is the official award announcement from the International Health Economics Association:

The Arrow Award Committee is proud to acknowledge the author of this innovative and policy-relevant paper which uses detailed U.S. dental claims data from a large multinational manufacturing company to examine the effect of strategic treatment delays – a source of ex post adverse selection – on insurance enrollment and consumer welfare. Reduced-form estimates indicate the importance of strategic treatment delays and structural estimates are used to analyze the effects of this strategic behavior. Approximately 40% of individuals are estimated to strategically delay claims from one year to the next, when they have incentives to do so. The resulting ex post adverse selection is associated with 61% lower insurance enrolment and 15% lower per capita consumer welfare than in an equilibrium with only traditional (ex ante) adverse selection. Reducing the frequency of open enrolment periods could substantially improve welfare and ex post adverse selection is one reason why dental coverage is relatively rare in the U.S., does not cover the largest risks and often limits coverage for pre-existing conditions.

Link to paper:

Link to award announcement:

Marika Cabral, Ph.D., is an Assistant Professor of Economics at the University of Texas at Austin and a Faculty Research Fellow at the National Bureau of Economic Research (NBER). She obtained her Ph.D. in economics from Stanford University in 2011 and she obtained her B.A. in economics and applied mathematics from the University of California San Diego in 2006. Her research covers a range of topics in health economics and public finance. Much of her recent research focuses on understanding the role of asymmetric information and the impact of government intervention in health (and health-related) insurance markets.

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