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The dataset ECON2032 Q2 dataset.dta is from the firstyear of the study and contains information on individuals’ healthexpenditure (health expenditure measured in £), insurance status (insurance = 1 if individual has insurance and 0 otherwise),

In private health insurance health care systems, having medicalhealth insurance means that when one consumes health care the insurance company pays for the cost of the health care. This createspotential problems of moral hazard, whereby individuals consumemore health...