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On the characteristics of a mixed system of provision of a private good. An application to health care

Simona Grassi ()

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

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.

Keywords: Public provision of private goods; health care (search for similar items in EconPapers)
JEL-codes: H42 I11 (search for similar items in EconPapers)
Date: 2006-04-15
New Economics Papers: this item is included in nep-ias and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:mil:wpdepa:2006-14

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