Why Didn't Health Insurance Take So Long?

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In the nineteen nineties, health insurance was guaranteed renewale. That's essentially the same thing as health status insurance. But why did it take so long? It wasn't dominant back then, right? This is another example of market inefficiency. Free markets can handle the question of pre existing conditions. If you buy term life insurance when you're young and healthy, you get to keep that insurance no matter how sick you get as time goes on. So thi there's no failure of insurance markets.

What unites John Cochrane the finance economist and “grumpy” policy blogger with John Cochrane the accomplished glider pilot? For John, the answer is that each derives from the same habit of mind which seeks to reduce things down to a few fundamental principles and a simple logical structure. And thus, piloting a glider can be understood as an application of optimal portfolio theory, and all of monetary policy can be made to fit within the structure of a single equation.

John joined Tyler to apply that habit of mind to a number of puzzles, including why real interest rates don’t equalize across countries, what explains why high trading volumes and active management persist in finance, how the pandemic has affected his opinion of habit formation theories, his fiscal theory of price level and inflation, the danger of a US sovereign debt crisis, why he thinks Bitcoin will eventually die, his idea for health-status insurance, becoming a national gliding champion, how a Renaissance historian for a father and a book translator for a mother shaped him intellectually, what’s causing the leftward drift in economics, the need to increase competition among universities, how he became libertarian, the benefits of blogging, and more.

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Recorded January 4th, 2021 Other ways to connect

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