Public Provision and Cross-Border Health Care
Autor: | David Granlund, Magnus Wikström |
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Rok vydání: | 2019 |
Předmět: |
Economics
Economics Econometrics and Finance (miscellaneous) jel:H42 03 medical and health sciences health expenditure income redistribution patient mobility public provision waiting time Public Provision 0502 economics and business Health care 050207 economics Nationalekonomi Health policy Government Public economics business.industry 030503 health policy & services Health Policy Health expenditure Income redistribution Patient mobility Waiting time 05 social sciences jel:H51 Redistribution (cultural anthropology) jel:I11 Incentive Health promotion Work (electrical) jel:I18 Redistribution of income and wealth 0305 other medical science business |
Zdroj: | Forum for health economicspolicy. 19(2) |
ISSN: | 1558-9544 |
Popis: | We study how the optimal public provision of health care depends on whether or not individuals have an option to seek publicly financed treatment in other regions. We find that, relative to the first-best solution, the government has an incentive to over-provide health care to low-income individuals. When cross-border health care takes place, this incentive is solely explained by that over-provision facilitates redistribution. The reason why more health care facilitates redistribution is that high-ability individuals mimicking low-ability individuals benefit the least from health care when health and labor supply are complements. Without cross-border health care, higher demand for health care among high-income individuals also contributes to the over-provision given that high-income individuals do not work considerably less than low-income individuals and that the government cannot discriminate between the income groups by giving them different access to health care. |
Databáze: | OpenAIRE |
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