Public and Private Roles in Health : Theory and Financing Patterns
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...
| Main Author: | |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1996/07/4100317/public-private-roles-health-theory-financing-patterns http://hdl.handle.net/10986/13656 |
| Summary: | 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. |
|---|