Research Article

# Why Did Americans Reject Compulsory Health Insurance after WWI? An Application of the Lifecycle Model

## Table 1

Comparison of results, low earnings profile (,).
 Expected lifetime utility for Initial wealth (\$) No insurance over lifetime IOOF insurance for first year only IOOF insurance for first 3 years only IOOF insurance for first 5 years only IOOF insurance for first 7 years only IOOF insurance for 40 years AALL insurance(4.0% premium) AALL insurance(2.6% premium) AALL insurance(2.1% premium) 0 −∞ 6.0484 6.0487 6.0488 6.0488 6.0481 6.0206 6.0420 6.0495 2 3.9284 6.0488 6.0491 6.0491 6.0491 6.0484 6.0209 6.0423 6.0497 4 6.0129 6.0492 6.0494 6.0495 6.0495 6.0488 6.0212 6.0425 6.0500 6 6.0420 6.0495 6.0498 6.0498 6.0498 6.0491 6.0215 6.0428 6.0503 8 6.0458 6.0499 6.0501 6.0501 6.0501 6.0495 6.0218 6.0431 6.0505 10 6.0473 6.0502 6.0504 6.0505 6.0505 6.0498 6.0220 6.0433 6.0508 22 6.0513 6.0521 6.0522 6.0523 6.0523 6.0516 6.0236 6.0449 6.0523 44 6.0552 6.0553 6.0553 6.0553 6.0553 6.0546 6.0264 6.0475 6.0550 46 6.0555 6.0555 6.0555 6.0555 6.0555 6.0548 6.0266 6.0478 6.0552 48 6.0558 6.0558 6.0558 6.0558 6.0558 6.0551 6.0269 6.0480 6.0554 50 6.0561 6.0561 6.0560 6.0560 6.0560 6.0554 6.0271 6.0483 6.0557 120 6.0651 6.0648 6.0643 6.0642 6.0642 6.0635 6.0351 6.0560 6.0634
Note: values in boldface show the highest expected lifetime utility for a given value of initial wealth across the given insurance options.

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