RESUMEN
This paper develops a framework for analyzing flexible spending account (FSA) participation and usage. We explore patterns of FSA usage using data from a benefits firm for 1996 including an examination of types of FSA expenditures and their timing. We estimate some simple econometric models of the participation decision and also the decision of how much to put into an FSA. Several pieces of evidence suggest that much of an FSA election amount is based on foreknowledge of expenditures. We also find that participants tend to spend their election amount early, thus obtaining an interest-free loan.
Asunto(s)
Participación de la Comunidad/economía , Planes de Asistencia Médica para Empleados/economía , Gastos en Salud/estadística & datos numéricos , Ahorros Médicos/estadística & datos numéricos , Participación de la Comunidad/estadística & datos numéricos , Gastos en Salud/tendencias , Investigación sobre Servicios de Salud , Humanos , Competencia Dirigida/economía , Ahorros Médicos/economía , Modelos Econométricos , Análisis de Regresión , Prorrateo de Riesgo Financiero , Exención de Impuesto , Estados UnidosRESUMEN
This paper investigates firm behavior when demand is linked over time. Among other things, the theoretical section shows that if firms are forward-looking, anticipated future events can affect current consumption of an 'addictive' good even when consumers are completely myopic. The empirical part of the paper reports a simulation of the 1983 federal cigarette excise tax increase. Both myopic and rational models of consumer demand give roughly the same predictions for per capita consumption, but neither model does very well predicting actual consumption. The problem appears to lie in the prediction of price, suggesting that supply considerations are important.
Asunto(s)
Conducta de Elección , Conductas Relacionadas con la Salud , Trastornos Relacionados con Sustancias/economía , Industria del Tabaco/economía , Costos y Análisis de Costo , Competencia Económica , Honorarios y Precios , Humanos , Modelos Econométricos , Fumar/economía , Trastornos Relacionados con Sustancias/psicología , Impuestos/legislación & jurisprudencia , Industria del Tabaco/organización & administración , Estados UnidosRESUMEN
OBJECTIVES: This paper reexamines the work of Meier and Licari in a previous issue of the Journal. METHODS: The impact of excise taxes on cigarette consumption and sales was measured via standard regression analysis. RESULTS: The 1983 federal tax increase is shown to have an anomalous effect on the regression results. When those data are excluded, there is no significant difference between state and federal tax increases. Further investigation suggests that firms raised cigarette prices substantially in the years surrounding the 1983 federal tax increase, which accounts for the relatively large decrease in consumption during this period. CONCLUSIONS: Federal excise taxes per se do not appear to be more effective than state excise taxes in terms of reducing cigarette consumption. The reaction of cigarette firms to government policies appears to be an important determinant of the success of antismoking initiatives.
