Rasmus Højbjerg Jacobsen

Willingness to Pay for Insurance in Denmark

We estimate how much Danish households are willing to pay for auto, home, and house insurance. We use a unique combination of claims data from a large Danish insurance company, measures of individual risk attitudes and discount rates from a field experiment with a representative sample of the adult Danish population, and information on household income and wealth from registers at Statistics Denmark. The results show that the willingness to pay is marginally higher than the actuarially fair value under expected utility theory, but significantly higher under rank-dependent utility theory, and up to 600 percent higher than the actuarially fair value.

Costing Adult Attention Deficit Hyperactivity Disorder: Impact on the Individual and Society

The rapid increase in recent years in the number of children and adults accessing care for ADHD (Attention Deficit Hyperactivity Disorder), raises a number of questions. It is unclear whether the increase is due to an increased public and professional recognition and awareness of ADHD as a debilitating human condition or to an actual increase in the incidence of individuals suffering from ADHD. Depending on the reasons behind the increased burden on services, and whether more effective treatments can be found, the future costs to society could be enormous. The study presented in this book estimates the private and social costs of ADHD. The key focus of this book is to study the costs related to individuals with ADHD who have not been diagnosed and who have not received treatment. In this respect, the study makes a unique contribution to scientific knowledge by investigating the cost of untreated ADHD. The study investigates the extent to which individuals with undiagnosed ADHD in childhood fare differently compared to otherwise similar individuals without ADHD. A long list of important parameters in an individuals life, e.g. educational attainment, occupational status, income, family situation, criminal record, health is examined. The results of the study provide not just cost estimates of ADHD; per se, but also create a point of reference which will be highly relevant for the evaluation of any future treatment for ADHD. The clear picture emerging from this study is that ADHD is associated with considerable private and social costs, reflecting that Adults with ADHD exhibit weak performance across all applied measures. These findings remain even when adults with ADHD are compared to a control group of their own siblings Even though the study is performed for Denmark it is argued that generalizability of the established results beyond Denmark is valid. Contributors to this volume - Torben Tranaes Anders Sorensen

The Fiscal Trilemma in a Danish Perspective

This article argues that the “fiscal trilemma”—the tension between sufficient revenue and long-run fiscal sustainability on one side; medium- to long-run growth opportunities on the other; and progressivity and avoidance of inequality on the third side—is very much present in Denmark. We provide an overview of main features of the Danish tax system; the state of fiscal balances in the short and longer run; growth and productivity developments; and the extent of inequality in the Danish society. Thereafter, we go into details with reforms and changes in the tax system over the last twenty-five years and diagnose main problem areas. We argue that the tax reform carried in Parliament on September 13, 2012, does not pass a “trilemma test”; that is, it is in conflict with at least one of the three key considerations. Finally, we put forth reform elements that should improve the system.