By Cam Donaldson

This re-creation examines the economics of well-being care platforms in a non-technical demeanour. it truly is written in a hugely available demeanour for economists and non-economists alike. it's very well timed and contains the newest facts of health and wellbeing care reforms and their implications from a few nations with varied platforms.

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Extra resources for Economics of Health Care Financing: The Visible Hand

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The most efficient way of achieving this is through some mechanism of public health insurance or taxation. In such cases, governments bear the administrative costs of the transfer and more people will be willing to make the transfer. A progressive taxation system of premium collection has the added 40 Markets and Market Failure in Health Care advantage of transferring not only wealth from those who are healthy to those who are not, but also from those who are rich (and frequently have better health) to those who are poor (and have poorer health).

Despite such famous occurrences, it should be noted that examples of such consumer power are few and far between. They demonstrate that consumers can be powerful but not that consumer sovereignty is widespread. CONCLUSIONS We have attempted to demonstrate in this chapter how markets for health care would work under idealised conditions. The reality, of course, is that no market possesses such idealised conditions. The nearest to an ideal market is probably the stock market, in which both sellers and buyers are armed with good knowledge of the world market in shares, which is kept up to date by computer technology.

Markets and Health Care 21 externalities; perfect knowledge on the part of the consumer; consumers to act free of self-interested advice from suppliers; and several small suppliers to promote genuine competition, and therefore prevent collusion on the part of suppliers. Each of these assumptions is discussed in more detail below. In order to set up the arguments to be presented in detail in the following chapter, a brief counter-argument to each assumption is presented here. Certainty The assumption of certainty is that consumers know exactly what they want, when they want it and where they can get it.

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