Publication: Public and Private Roles in Health : Theory and Financing Patterns
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1996-07
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2013-05-29
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The appropriate role of the state in health is complex both in economic theory and in practice. Theory identifies three reasons for state action: (i) public goods or services with large externalities (involving efficiency); (ii) poverty (involving equity); and (iii) 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 tom other sectors - governments tend to finance an increasing share of health care as incomes rise. Regulation, mandates and provision of information are also crucial public instruments; public provision of care is less important.
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“Musgrove, Philip. 1996. Public and Private Roles in Health : Theory and Financing Patterns. HNP discussion paper series;. © World Bank. http://hdl.handle.net/10986/13656 License: CC BY 3.0 IGO.”
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