Education and Allocative Efficiency: Evidence from Breast Cancer Screening

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 26.06.2007, 12:15 - 13:30


Presentation by 

Fabian Lange (McGill University)


We study the role of education in promoting allocative efficiency in health care decisions using the breast cancer screening decision. We model the screening decision of individuals facing heterogeneous risks of devel- oping breast cancer. Education is assumed to improve individual's assessments of their subjective risks. This induces (for the relevant parameter range) a positive interaction between education and risk factors in the screening decision. Empirically, educated individuals are indeed more responsive to the presence of risk factors in their screening decision. They also are more likely to adjust their subjective risk assessments to account for the presence of risk factors. This study therefore provides support for a role of education in promoting allocative eó ciency in health care decisions.

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