It also enables a comprehensive welfare analysis that considers
the effects on both the aggregate economy and individuals. Similar
models have been used in recent studies on health insurance systems and publicfinance issues. For example,Jeske and Kitao (2009)
study the effect of the US tax subsidy on health insurance, Hsu
(2013) analyzes individuals' choices of health insurance/saving
and the effects of some US welfare pro-grams, Hsu and Liao (2015)
study thefinancing issue focusing on the National Health Insurance
in Taiwan, and Hansen et al. (2014) analyze the corresponding
impacts and financing burden of a potential health insurance reform in the US. Heathcote (2005) and Hsu and Yang (2013) also use
this framework to discuss fiscal policy and income taxation and the
corresponding welfare effects.