User Charges for Health Care: A Review of the Underlying Theory and Assumptions

Germano Mwabu

No wp-1997-127, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The paper reviews the theoretical basis for the application of user fees in the public health sector in low-income countries with particular reference to the special characteristics of medical care as a commodity. The general equilibrium efficiency result of the market mechanism is shown to be the theoretical justification for the financing of health services via a system of user charges. If markets for all goods and services exist, and are perfect in a very strict sense, the welfare outcome of the price mechanism cannot be improved upon by any other resource allocation device.

Keywords: Game theory; Health; Healthcare; Information theory in finance; Public health (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-1997-127

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