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Redistribution at the Hospital

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  • Anne Emblem

Abstract

This paper studies redistribution by means of a public supply of medical treatment. We show that the government can redistribute income towards low-ability individuals in a world of asymmetric information by offering bundles of medical treatment and redistributive payment. If self-selection is a problem, then the separating scheme offers high-ability individuals complete treatment against a high payment, and low-ability individuals partial treatment against a low payment. In particular, the level of treatment offered low-ability individuals is distorted downwards. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Anne Emblem, 2002. "Redistribution at the Hospital," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 9(4), pages 367-378, August.
    • Handle: RePEc:kap:itaxpf:v:9:y:2002:i:4:p:367-378
    DOI: 10.1023/A:1016507817601
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    References listed on IDEAS

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    Cited by:

    1. Simona GRASSI, 2006. "On the characteristics of a mixed system of provision of a private good. An application to health care," Departmental Working Papers 2006-14, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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