Income Disparity, Inequity Aversion and the Design of the Healthcare System
An "ex post" social welfare function is used to evaluate alternative healthcare systems. If a society is averse to inequality and there is some income disparity, social welfare under private healthcare insurance is sometimes higher and sometimes lower than social welfare under public healthcare. However, a third system-public healthcare with the option to purchase supplemental healthcare insurance-is always socially preferred to private healthcare insurance. Moreover, it is either socially preferred to public healthcare or equivalent to it. Copyright � The editors of the "Scandinavian Journal of Economics" 2009. .
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Volume (Year): 111 (2009)
Issue (Month): 2 (06)
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