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Table 2 Summary of symbols used for variables in equations

From: Health Uninsurance in rural America: a partial equilibrium analysis

Symbol Meaning Symbol Meaning
Principal-Agent Model Crop diversification Index
φ Health Insurance preferred W 0 Initial Wealth
ω Explicit characteristics q n + 1 Terminal Wealth
γ Latent Characteristics q i Output from cropped area i
U f Utility of farmer (agent) q j Output from cropped area j
C(zi) Administrative costs of Health insurance companies E(y) Expected Returns from initial wealth
π Utility of Health Insurance Company r Expected net return on the ith asset
IC Incentive compatibility constraints Risk Attitude
IR Rationality constraints σ 2 Variance of Portfolio
γ a “Low risk” Individuals y CE Certainty Equivalent
γ b “High risk” Individuals s i Optimal share of crop
τ Health insurance loss for unknown proportions A i Area of available farming land used for crop i
τa(e) Loss prospect for γa n Number of crop portfolio choices
τb(e) Loss prospect for γb ρ τ Tau-Equivalent
E(τa) Expected loss prospect for γa Test for IIA
E(τb) Expected loss prospect for γb B First Regression
R a Risk premium for γa b Second Regression
R b Risk premium for γb β B Coefficient of B
α % of respondents in τa β b Coefficient of b
1 − α % of respondents in τb B Covariance of B
m p Alternative profile of options for health risk management b Covariance of b
f i Probability density function for consumer preference Multinomial Logit Regression
Tau Equivalent Test
 X Number of scale statements δ i Coefficient of explicit variables
\( {\sigma}_{Y_i}^2 \) variance of the scores of each scaled statement β i Coefficient of global compatibility constraints
\( {\sigma}_X^2 \) the total variance of scores on the respondents’ scales ρ i Coefficient of latent variables
Diverse states of nature health insurance decisions by farmers
  p1(s1) p2 (s2)
Good health Bad health
Z0 (no health insurance) W + W0 W + W0 - H
Z1 (private health insurance) W + W0 - πp W + W0 - πh - Dh + Rp
Z2 (government insurance plan) W + W0 - πm W + W0 - πm - Dh + Rm