Informal Payments in Developing Countries' Public Health Sectors¤

Ting Liu () and Monic Sun ()
Additional contact information
Monic Sun: Department of Economics, Boston University

No WP2007-032, Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics

Abstract: A government or public organization would like to subsidize an indivisible good. Consumers’ valuations of the good vary according to their wealth and benefits from the good. Education, medical care, and housing are common examples. A regulator has access to either wealth or benefit information, but not both. We present a method to translate a wealth-based policy to a benefit-based policy, and vice versa. We give a necessary and sufficient condition for the wealth-based policy and translated benefit-based policy to implement the same assignment: consumers choose to purchase the good under the wealth-based policy if and only if they choose to do so under the translated benefit-based policy. General taxation allows equivalent wealth-based and benefit-based policies to generate the same revenue from consumers.

Pages: 20pages
Date: 2007-04
New Economics Papers: this item is included in nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bos:wpaper:wp2007-032

Access Statistics for this paper

More papers in Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Program Coordinator ().