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Health care inequality, patient mobility and welfare

Author

Listed:
  • Alexander Karpov

    (National Research University Higher School of Economics)

Abstract

This paper justifies unequal health care quality in a model with two regions and patients differentiated by location and quality perception. There are two efficient regimes of health care quality provision. In the presence of high travel and quality provision costs, qualities should be equal. Reducing these costs results in unequal distribution of quality in effective solution. High health care inequality under a centralised solution is better for the majority of the population as well as for both regions, if the costs are sufficiently low. Market equilibrium implements an efficient solution only when there are high travel and quality provision costs.

Suggested Citation

  • Alexander Karpov, 2016. "Health care inequality, patient mobility and welfare," Economics Bulletin, AccessEcon, vol. 36(2), pages 1000-1009.
    • Handle: RePEc:ebl:ecbull:eb-16-00087
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    References listed on IDEAS

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    More about this item

    Keywords

    horizontal and vertical differentiation; health care quality; health care inequality; Hotelling competition;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • I1 - Health, Education, and Welfare - - Health

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