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The political economy of health care finance

Author

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  • MORENO-TERNERO, Juan D.
  • ROEMER, John E.

Abstract

We present a model of political competition, in a multi-dimensional policy space and with policy-oriented candidates, to analyze the problem of health care finance. In our model, health care is either financed publicly (by means of general taxation) or privately (by means of a copayment). The extent of these two components (as well as the overall tax schedule) is the outcome of the process of political competition. Our results highlight, from a political-economy perspective, the key role of technological change in explaining the widely observed phenomenon, in advanced democracies, of a rising share of total economic resources spent on health.

Suggested Citation

  • MORENO-TERNERO, Juan D. & ROEMER, John E., 2007. "The political economy of health care finance," LIDAM Discussion Papers CORE 2007031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2007031
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2007.html
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    Citations

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    Cited by:

    1. Batinti, Alberto & Congleton, Roger D., 2018. "On the codetermination of tax-financed medical R&D and healthcare expenditures: Models and evidence," European Journal of Political Economy, Elsevier, vol. 54(C), pages 175-188.
    2. Georges Casamatta & L. Batté, 2016. "The Political Economy of Population Aging," Post-Print hal-02520521, HAL.
    3. David Campbell, 2016. "Economies through Application of Nonmedical Primary-Preventative Health: Lessons from the Healthy Country Healthy People Experience of Australia’s Aboriginal People," IJERPH, MDPI, vol. 13(4), pages 1-16, April.
    4. Casamatta, G. & Batté, L., 2016. "The Political Economy of Population Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 381-444, Elsevier.

    More about this item

    Keywords

    political competition; health care finance; ideological equilibrium; technology;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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