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Is public health insurance an appropriate instrument for redistribution?

  • Dominique HENRIET
  • Jean-Charles ROCHET

The share of the public sector in health insurance provision varies enormously from country to country. It is larger in more redistributive countries. We provide a possible theoretical explanation for these facts: a public health insurance system, financed by taxes, can be an efficient means of redistribution, complementary to income taxation. This relies on the assumption of a negative correlation between income and morbidity. We examine the empirical validity of this assumption on macro data.

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Article provided by GENES in its journal Annals of Economics and Statistics.

Volume (Year): (2006)
Issue (Month): 83-84 ()
Pages: 61-88

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Handle: RePEc:adr:anecst:y:2006:i:83-84:p:03
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