Public health care with waiting time: the role of supplementary private health care
We consider an economy where most of the health care is publicly provided,and where there is waiting time for several types of treatments. Privatehealth care without waiting time is an option for the patients in the publichealth queue. We show that although patients with low waiting costs willchoose public treatment, they may be better off with waiting time thanwithout. The reason is that waiting time induces patients with high waitingcosts to choose private treatment, thus reducing the cost of public healthcare that everyone pays for. Even if higher quality (i.e. zero waiting time) canbe achieved at no cost, the self-selection induced redistribution may implythat it is socially optimal to provide health care publicly and at an inferiorquality level. We give a detailed discussion of the circumstances in which it isoptimal to have waiting time for public health treatment. Moreover, we studythe interaction between this quality decision and the optimal tax/subsidy onprivate health care.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Sören Blömquist & Vidar Christiansen, 1998.
"Price Subsidies Versus Public Provision,"
International Tax and Public Finance,
Springer, vol. 5(3), pages 283-306, July.
- Sören Blomquist & Vidar Christiansen, . "Price Subsidies versus Public Provision," EPRU Working Paper Series 97-08, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Blomquist, Sören & Christiansen, Vidar, 1997. "Price Subsidies versus Public Provision," Working Paper Series 1997:12, Uppsala University, Department of Economics.
- Besley, Timothy & Coate, Stephen, 1991.
"Public Provision of Private Goods and the Redistribution of Income,"
American Economic Review,
American Economic Association, vol. 81(4), pages 979-84, September.
- Besley, T. & Coate, S., 1989. "Public Provision Of Private Goods And The Redistribution Of Income," Papers 36, Princeton, Woodrow Wilson School - Discussion Paper.
- Alistair Munro, 1990.
"Self-Selection and Optimal In-Kind Transfers,"
Working Papers Series
90/3, University of Stirling, Division of Economics.
- Blackorby, Charles & Donaldson, David, 1988. "Cash versus Kind, Self-selection, and Efficient Transfers," American Economic Review, American Economic Association, vol. 78(4), pages 691-700, September.
- Hoel,M. & Soether,E.M., 2000.
"Private health care as a supplement to a public health system with waiting time for treatment,"
41/2000, Oslo University, Department of Economics.
- Hoel, Michael & Sæther, Erik Magnus, 2009. "Private health care as a supplement to a public health system with waiting time for treatment," HERO On line Working Paper Series 2000:9, Oslo University, Health Economics Research Programme.
- Cullis, John G. & Jones, Philip R., 1985. "National health service waiting lists : A discussion of competing explanations and a policy proposal," Journal of Health Economics, Elsevier, vol. 4(2), pages 119-135, June.
- Brekke, K.R. & Sorgard, L., 2000. "Where are all the Physicans? Private vs. Public Health Care," Norway; Department of Economics, University of Bergen 1800, Department of Economics, University of Bergen.
- BOADWAY, Robin & MARCHAND, Maurice & SATO, Motohiro, 1997.
"Subsidies versus public provision of private goods as instruments for redistibution,"
CORE Discussion Papers
1997071, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Boadway, Robin & Marchand, Maurice & Sato, Motohiro, 1998. " Subsidies versus Public Provision of Private Goods as Instruments for Redistribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(3), pages 545-64, September.
- BOADWAY, Robin & MARCHAND, Maurice & SATO, Motohiro, . "Subsidies versus public provision of private goods as instruments for redistribution," CORE Discussion Papers RP 1355, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Iversen, Tor, 1997. "The effect of a private sector on the waiting time in a national health service," Journal of Health Economics, Elsevier, vol. 16(4), pages 381-396, August.
- Boadway, R. & Marchand, M., .
"The use of public expenditures for redistributive purposes,"
CORE Discussion Papers RP
1131, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Boadway, Robin & Marchand, Maurice, 1995. "The Use of Public Expenditures for Redistributive Purposes," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 45-59, January.
- Boadway, R. & Marchand, M., 1990. "The use of public expenditures for distributive purposes," CORE Discussion Papers 1990066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hoel, Michael & Saether, Erik Magnus, 2003.
"Public health care with waiting time: the role of supplementary private health care,"
Journal of Health Economics,
Elsevier, vol. 22(4), pages 599-616, July.
- Michael Hoel & Erik Magnus Sæther, 2001. "Public Health Care with Waiting Time: The Role of Supplementary Private Health Care," CESifo Working Paper Series 562, CESifo Group Munich.
- Sam Bucovetsky, 1984. "On the Use of Distributional Waits," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 699-717, November.
- Blomquist, Suren & Christiansen, Vidar, 1995. " Public Provision of Private Goods as a Redistributive Device in an Optimum Income Tax Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 547-67, December.
- Hamilton, Barton H. & Hamilton, Vivian H. & Mayo, Nancy E., 1996. "What are the costs of queuing for hip fracture surgery in Canada?," Journal of Health Economics, Elsevier, vol. 15(2), pages 161-185, April.
- Lindsay, Cotton M & Feigenbaum, Bernard, 1984. "Rationing by Waiting Lists," American Economic Review, American Economic Association, vol. 74(3), pages 404-17, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:22:y:2003:i:4:p:599-616. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.