The political economy of health care finance

Juan Moreno-Ternero and John Roemer

No 2007031, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We present a model of political competition, in a multi-dimensional policy space and with policy-oriented candidates, to analyze the problem of health care finance. In our model, health care is either financed publicly (by means of general taxation) or privately (by means of a copayment). The extent of these two components (as well as the overall tax schedule) is the outcome of the process of political competition. Our results highlight, from a political-economy perspective, the key role of technological change in explaining the widely observed phenomenon, in advanced democracies, of a rising share of total economic resources spent on health.

Keywords: political competition; health care finance; ideological equilibrium; technology (search for similar items in EconPapers)
JEL-codes: D72 H51 I18 (search for similar items in EconPapers)
Date: 2007-05-01
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2007031

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