EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/19084
  
Title:Concerns for equity and the optimal co-payments for publicly provided health care PDF Logo
Authors:Hoel, Michael
Issue Date:2005
Series/Report no.:CESifo working papers 1620
Abstract:In countries where health care is publicly provided and where equity considerations play an important role in policy decisions, it is often argued that an increase in co-payments is unacceptable as it will be particularly harmful to the less well-off in society. The present paper derives socially optimal co-payments in a simple model of health care where people differ in income and in severity of illness. The social optimum depends on the welfare weights given to persons with different levels of expected utility. Increased concern for equity may increase optimal co-payments for illnesses with homogeneous severity across the population. For illnesses where the severity varies strongly across the population, optimal copayments go down as a response to increased concern for equity, provided income differences in the society are sufficiently small.
Subjects:public health
co-payments
equity concerns
JEL:H42
D63
I18
H51
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
cesifo1_wp1620.pdf191.84 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/19084

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.