Publication: Public and Private Roles in Health : Theory and Financing Patterns
Date
1996-07
ISSN
Published
1996-07
Author(s)
Musgrove, Philip
Abstract
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.
Citation
“Musgrove, Philip. 1996. Public and Private Roles in Health : Theory and Financing Patterns. HNP discussion paper series;. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/21a41b9e-5240-5936-a931-4dbfe725076b License: CC BY 3.0 IGO.”