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From Plan to Market in the Health Sector? China's Experience

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  • Karen Eggleston
  • Keqin Rao
  • Jian Wang

Abstract

Countries worldwide confront the challenge of defining and achieving appropriate roles for government and market forces in the health sector. China--as both a developing and a transitional economy--represents an important case. This paper uses an international comparative perspective to examine how the health of China's population and other aspects of health system performance changed during the reform era. We draw on standard public finance and health economics theory, as well as the more recent incomplete-contracting theory of property rights, to summarize the comparative advantages of government and market for financing and delivery of health services, particularly in developing and transitional economies. We then describe and analyze against this theoretical background the transformation of China's health sector and recent commitment of government funds to move toward universal coverage.

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Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0501.

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Date of creation: 2005
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Handle: RePEc:tuf:tuftec:0501

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Cited by:
  1. Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2005. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," Discussion Papers Series, Department of Economics, Tufts University 0523, Department of Economics, Tufts University.
  2. Yannis M. Ioannides & Adriaan R. Soetevent, 2005. "Social Networking and Individual Outcomes Beyond the Mean Field Case," Discussion Papers Series, Department of Economics, Tufts University 0521, Department of Economics, Tufts University.
  3. Eggleston, Karen & Wang, Jian & Rao, Keqin, 2008. "From plan to market in the health sector?: China's experience," Journal of Asian Economics, Elsevier, vol. 19(5-6), pages 400-412.
  4. Gilbert E. Metcalf & Jongsang Park, 2006. "A Comment on The Role of Prices for Excludable Public Goods," NBER Working Papers 12535, National Bureau of Economic Research, Inc.
  5. Darlene C. Chisholm & George Norman, 2006. "When to Exit a Product: Evidence from the U. S. Motion-Picture Exhibition Market," American Economic Review, American Economic Association, vol. 96(2), pages 57-61, May.
  6. Janet Currie & Wanchuan Lin & Wei Zhang, 2010. "Patient Knowledge and Antibiotic Abuse: Evidence from an Audit Study in China," NBER Working Papers 16602, National Bureau of Economic Research, Inc.
  7. Ng, Ying Chu, 2011. "The productive efficiency of Chinese hospitals," China Economic Review, Elsevier, vol. 22(3), pages 428-439, September.

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