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Redistribution at the Hospital

Anne Emblem ()

International Tax and Public Finance, 2002, vol. 9, issue 4, 367-378

Abstract: This paper studies redistribution by means of a public supply of medical treatment. We show that the government can redistribute income towards low-ability individuals in a world of asymmetric information by offering bundles of medical treatment and redistributive payment. If self-selection is a problem, then the separating scheme offers high-ability individuals complete treatment against a high payment, and low-ability individuals partial treatment against a low payment. In particular, the level of treatment offered low-ability individuals is distorted downwards. Copyright Kluwer Academic Publishers 2002

Keywords: health; medical treatment; insurance; redistribution; self-selection (search for similar items in EconPapers)
Date: 2002
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DOI: 10.1023/A:1016507817601

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