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Achieving a fair geographical distribution of health-care resources

Author

Listed:
  • Michel Mougeot

    (CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

  • Florence Naegelen

    (CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

Abstract

This paper analyzes the factors determining the physicians’ location decisions when physicians have heterogeneous preferences about the regional amenities in a two-regions health care system. While the first best allocation entails geographic equality in access to and quality of health-care services, we show that free location decisions results in an unfair allocation in health care resources. We first characterize the public policies allowing to decentralize the first best. Then, we show that the optimal policy aiming at equalizing medical densities consists in setting regionally differentiated prices and a single lump-sum transfer. This transfer is a tax (resp. a subsidy) when the value of the difference in regional amenities is low (resp. high).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michel Mougeot & Florence Naegelen, 2018. "Achieving a fair geographical distribution of health-care resources," Post-Print hal-01816851, HAL.
    • Handle: RePEc:hal:journl:hal-01816851
    DOI: 10.1016/j.regsciurbeco.2018.03.008
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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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