Whiplash Claims and Moral Hazard
نویسندگان
چکیده
Although whiplash is a common cause of disability, there is usually no demonstrable pathology and this leaves scope for moral hazard in claims for loss of earnings. Using weekly data about temporary disability, prescription drug purchases and the use of health services during 1996-2007, we examine the effects of a Danish 2002 reform that extended the period where whiplash claimants could get compensation for temporary loss of earnings when claiming permanent loss of earnings capacity. We find that the reform increased temporary disability by about 18 percent without a matching increase in drug purchases or the use of health services.
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