Third degree waiting time discrimination: optimal allocation of a public sector health care treatment under rationing by waiting

Hugh Gravelle and Luigi Siciliani

Discussion Papers from Department of Economics, University of York

Abstract: In many public health care systems treatment is rationed by waiting time. We examine the optimal allocation of a .xed supply of a treatment between di¤erent groups of patients. Even in the absence of any distributional aims welfare is increased by third degree waiting time discrimination. Because waiting time imposes dead weight losses on patients, lower waiting times should be o¤ered to groups with higher marginal waiting time costs and with less elastic demand for the treatment.

Keywords: Waiting times; prioritisation; rationing (search for similar items in EconPapers)
JEL-codes: H21 H42 I11 I18 (search for similar items in EconPapers)
Date: 2007-07
New Economics Papers: this item is included in nep-hea and nep-pbe
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Journal Article: Third degree waiting time discrimination: optimal allocation of a public sector healthcare treatment under rationing by waiting (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:yor:yorken:07/22

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