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Redistribution at the hospital

Author

Listed:
  • Emblem, Anne Wenche

    (Faculty of Economics and Social Science)

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.

Suggested Citation

  • Emblem, Anne Wenche, 2009. "Redistribution at the hospital," HERO Online Working Paper Series 2002:4, University of Oslo, Health Economics Research Programme.
    • Handle: RePEc:hhs:oslohe:2002_004
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    File URL: http://www.hero.uio.no/publicat/2002/HERO2002_4.pdf
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    More about this item

    Keywords

    health; medical treatment; insurance; redistribution; self-selection;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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