Conventional theory holds that moral hazard--the additional health care purchased as a result of becoming insured--is an opportunistic price response and is welfare-decreasing because the value of the additional health care purchased is less than its costs. The theory of the demand for health insurance presented here suggests that moral hazard is primarily an income transfer effect. In an estim...

This office consists of six professionals and support personnel concerned with the evaluation of environmental health hazards due mainly to chemical agents. An effort initiated earlier to pull together toxicologic information on organ systems and their diseases in humans with environmental or occupational chemical exposures was continued. It received its impetus when the cause of the Legionaire...