On the characteristics of a mixed system of provision of a private good: an application to health care

Details

Serval ID
serval:BIB_8DB1DBC1FBA9
Type
Report: a report published by a school or other institution, usually numbered within a series.
Publication sub-type
Working paper: Working papers contain results presented by the author. Working papers aim to stimulate discussions between scientists with interested parties, they can also be the basis to publish articles in specialized journals
Collection
Publications
Title
On the characteristics of a mixed system of provision of a private good: an application to health care
Author(s)
Grassi Simona
Institution
Università degli Studi di Milano. Dipartimento di Scienze Economiche Aziendali e Statistiche
Issued date
2006
Number
2006-14
Genre
Working paper
Language
english
Abstract
We characterise the conditions for the existence of a mixed system of finance and provision of health-care by a social planner and a private market coexists. Private insurance/provision and public health-care provision cannot be consumed together, each individual has a certain probability of being sick or healthy, they have different incomes and the richer they are, the more health-care services they are willing to buy. Everybody contributes through a general linear income taxation to the finance of the public provision of health-care. Implicitly income is not observable by the social planner. The selection of users is endogenous. The quantity of health-care service supplied by the public sector suffers from congestion. We derive the conditions for existence of a mixed system and we characterise the impact of an increase or decrease of resources directed to the public system.
Create date
19/10/2010 9:16
Last modification date
03/03/2018 19:16
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