Income Distribution and the Public-Private Mix in Health Care Provision: The Latin American Case

Daniel Maceira ()

No 4154, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: Recent literature on Latin American countries shows that private expenses as a share of the total expenditures in health tend to be higher the lower the nation`s level of economic development. This paper considers a discrete choice model of product differentiation, where consumer choice is based on a price-quality tradeoff. Physicians are involved in a dual-job holding structure, working as agents in the official sector while they maximize profits in a fragmented private sector.

Date: 1998-12
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