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Is waiting-time prioritisation welfare improving? Author info | Abstract | Publisher info | Download info | Related research | Statistics Hugh Gravelle (National Primary Care Research and Development Centre, Centre for Health Economics, University of York, UK)
Luigi Siciliani
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Rationing by waiting time is commonly used in health care systems with zero or low money prices. Some systems prioritise particular types of patient and offer them lower waiting times. We investigate whether prioritisation is welfare improving when the benefit from treatment is the sum of two components, one of which is not observed by providers. We show that positive prioritisation (shorter waits for patients with higher observable benefit) is welfare improving if the mean observable benefit of the patients who are indifferent about receiving the treatment is smaller than the mean observable benefit of the patients who receive the treatment. This is true (a) if the distribution of the unobservable benefit is uniform for any distribution of the observable benefit; or (b) if the distribution of the observable benefit is uniform and the distribution of the unobservable benefit is log-concave. We also show that prioritisation is never welfare increasing if and only if the distribution of unobservable benefit is negative exponential. Copyright © 2007 John Wiley & Sons, Ltd.
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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics .
Volume (Year): 17 (2008)
Issue (Month): 2 ()
Pages: 167-184
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Handle: RePEc:wly:hlthec:v:17:y:2008:i:2:p:167-184Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Gravelle, Hugh & Dusheiko, Mark & Sutton, Matthew, 2002.
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Kurt R. Brekke & Luigi Siciliani & Odd Rune Straume, 2007.
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Kurt R. Brekke & Luigi Siciliani & Odd Rune Straume, 2007.
"Competition and Waiting Times in Hospital Markets ,"
NIPE Working Papers
9/2007, NIPE - Universidade do Minho.
[Downloadable!] Brekke, Kurt Richard & Siciliani, Luigi & Straume, Odd Rune, 2007.
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"Competition and waiting times in hospital markets ,"
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[Downloadable!] (restricted) Hugh Gravelle & Luigi Siciliani, 2007.
"Ramsey Waits: Allocating Public Health Service Resources when there is Rationing by Waiting ,"
Discussion Papers
07/15, Department of Economics, University of York.
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Other versions: Jacco Thijssen, 2007.
"Ramsey Waits: A Computational Study on General Equilibrium Pricing of Derivative Securities ,"
Discussion Papers
07/16, Department of Economics, University of York.
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Hugh Gravelle & Luigi Siciliani, 2009.
"Third degree waiting time discrimination: optimal allocation of a public sector healthcare treatment under rationing by waiting ,"
Health Economics ,
John Wiley & Sons, Ltd., vol. 18(8), pages 977-986.
[Downloadable!]
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