Public and Private Roles in Health
The appropriate role of the state in health is complex both in economic theory and in practice. Theory identifies three reasons for state action: public goods or services with large externalities (involving efficiency); poverty (involving equity); and failings peculiar to insurance markets for health care (where both inefficiency and inequity arise). The insurance domain presents the most costly and difficult problems, and explains why -- in contrast to other sectors -- government tend to finance an increasing share of health care as incomes rise.
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| Length: | 79 pages |
| Date of creation: | 1996 |
| Date of revision: | |
| Handle: | RePEc:fth:wobadi:339 |
| Contact details of provider: | Postal: Phone: (202) 477-1234 Web page: http://www.worldbank.org/Email: More information through EDIRC
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