Redistribution at the Hospital
This paper studies redistribution by means of a public supply of medical treatment. We show that the government can redistribute income towards low-ability individuals in a world of asymmetric information by offering bundles of medical treatment and redistributive payment. If self-selection is a pro...
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Veröffentlicht in: | International tax and public finance 2002-08, Vol.9 (4), p.367-378 |
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description | This paper studies redistribution by means of a public supply of medical treatment. We show that the government can redistribute income towards low-ability individuals in a world of asymmetric information by offering bundles of medical treatment and redistributive payment. If self-selection is a problem, then the separating scheme offers high-ability individuals complete treatment against a high payment, and low-ability individuals partial treatment against a low payment. In particular, the level of treatment offered low-ability individuals is distorted downwards. Copyright Kluwer Academic Publishers 2002 |
doi_str_mv | 10.1023/A:1016507817601 |
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We show that the government can redistribute income towards low-ability individuals in a world of asymmetric information by offering bundles of medical treatment and redistributive payment. If self-selection is a problem, then the separating scheme offers high-ability individuals complete treatment against a high payment, and low-ability individuals partial treatment against a low payment. In particular, the level of treatment offered low-ability individuals is distorted downwards. 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source | RePEc; SpringerLink Journals - AutoHoldings |
subjects | Adverse selection Consumption Economic theory Expected utility health Health care Health insurance Health services Hospitals Income distribution Income redistribution insurance Medical treatment Public finance redistribution self-selection Social policy Studies Willingness to pay |
title | Redistribution at the Hospital |
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