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Centre for Economic Policy Research Center for Economic Studies Maison des Sciences de l 'Homme

Alternative Systems of Health Care Provision Author(s): Timothy Besley, Miguel Gouveia and Jacques Drèze Reviewed work(s): Source: Economic Policy, Vol. 9, No. 19 (Oct., 1994), pp. 199-258 Published by: Wiley on behalf of the Centre for Economic Policy Research, Center for Economic Studies, and the Maison des Sciences de l 'Homme Stable URL: http://www.jstor.org/stable/1344496 . Accessed: 24/12/2012 16:11
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Alternative systems of health care provision
Timothy Besley and MiguelGouveia and of Princeton University University Pennsylvania

1. I[ntroduction Around the developed world, many health care systems are in crisis. Populations feel either that the cost of running their systems is too high or that the quality of provision is declining. Possibly these are two sides of the same coin. If there is a fundamental tendency for costs to rise, something must give; either consumers will consume less or budget shares will have to rise. However, from a policy point of view this will create a state of flux. Society will look for ways to get more for



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'The Future of Health Policy: Constraints, Controls and Choices ', inJ. de Kervasdoue,John R. Kimberlyand Victor G. Rodwin (eds.), TheEnd of Illusion:TheFutureof HealthPolicyin Western Industrialized Nations, Berkeley: University of California Press. Kirkman-Liff, B. (1994). 'Health Care Reform in the Netherlands, Germany and the United Kingdom ', in A. Blomqvist and D. M. Brown (eds.) (1994). and Laffont, J.-J. and J. Tirole (1993). A Theory Incentivesin Procurement Regulation,Cambridge MA: of MIT Press. Oxford: Basil Blackwell. McKeown, T. (1979). TheRole of Medicine: Dream,Mirageor Nemesis?, Madrian, B. (1992). 'Employment-Based Health Insurance andJob Mobility:Is There Evidence ofJobLock? ' typescript, MIT. Manning, W. G., J. Newhouse, N. Duan, E. Keeler, A. Liebowitz and M. Marquis (1987). 'Health Insurance and the Demand for Medical Care: Evidence from a Randomized Experiment ', American Economic Review. Mueller, D. (1989). Public Choice Cambridge: Cambridge University Press. II, Newhouse, J. (1992). 'Medical Care Costs: How Much Welfare Loss? ',Journal of Economic Perspectives. Nichols, A. L. and R.J. Zeckhauser (1982). 'Targeting Transfers through Restrictions on Recipients ', American Economic Review,(Papers and Proceedings). OECD (1984) Tax Elasticities CentralGovernment PersonalIncomeTax Systems, Paris: OECD. of (1993a). OECDHealthData, Paris: OECD. (1993b). OECDHealth Systems Facts and Trends,1960-1991, Paris: OECD. Economic Review. Pauly, M. (1968). 'The Economics of Moral Hazard ', American (1986). 'Taxation, Health Insurance, and Market Failure in the Medical Economy ', Journal of Economic Literature. (1992). 'The Normative and Positive Economics of Minimum Health Benefits ', in P. Zweifel and H. E. Frech III (eds.): HealthEconomics Boston: Kluwer. Worldwide, Peterson, N. (1986). 'A Public Choice Analysis of Parallel Public-Private Provision of Health Care ', in A. Culyer and B. Jonsson (eds.): Publicand PrivateHealth Services, Oxford, Basil Blackwell. New York, Harper Collins. Phelps, C. (1992). HealthEconomics, Rawls,J. (1971). A Theory Justice,Harvard University Press, Cambridge, Massachusetts. of Scheffler, R. and E. Nauenberg (1991). 'Health Care in the United States During the 1980 's: Lessons for Great Britain ', in A. McGuire, P. Fenn and K. Mayhew (eds): Providing Health Care:TheEconomics Oxford: Oxford University Press. of Alternative Systems Finance and Delivery, of and Amsterdam: North-Holland. Sen, A. K. (1985). Commodities Capabilities, Stigler, G. (1970). 'Director 's Law of Public Income Redistribution ', Journal of Law and Economics. Stiglitz, J. E. (1974). 'The Demand for Education in Public and Private School Systems ', Journal of PublicEconomics. Tobin, J. (1970). 'On Limiting the Domain of Inequality ', Journal of Law and Economics. Usher, D. (1977). 'The Welfare Economics of the Socialization of Commodities ', Journal of Public Economics. Van Doorslaer, E. and A. Wagstaff (1992). 'Equity in the Delivery of Health Care: Some International Comparisons ', Journal of HealthEconomics. Wagstaff, A. and E. Van Doorslaer (1992). 'Equity in the Financing of Health Care: Some International Comparisons ', Journal of HealthEconomics. I: SincetheWar:Volume Problems HealthCare:TheNationalHealth Webster, C. (1988). TheHealthServices of Service 1957, London: Her Majesty 's Stationery Office. before Weisbrod, B. (1991). 'The Health Care Quadrilemma: An Essayon Technological Change, Insurance, Literature. Quality of Care, and Cost Containment ', Journal of Economic Weitzman, M. (1977). 'Is the Price System or Rationing More Effective in Getting a Commodity to those Who Need It Most? ', BellJournalof Economics. Wilsford, D. (1991). Doctorsand the State:The Politicsof Health Carein Franceand in the UnitedStates, Durham: Duke University Press. This content downloaded on Mon, 24 Dec 2012 16:11:43 PM All use subject to JSTOR Terms and Conditions 258 Timothy Besleyand Miguel Gouveia Wilson, L. S., and M. Katz (1983). 'The Socialization of Commodities ', Journal of PublicEconomics. to Winter, R. A. (1992). 'Moral Hazard and Insurance Contracts ', in G. Dionne (Ed): Contributions Dordrecht: Kluwer. InsuranceEconomics, Woolhander, S. and D. Himmelstein (1991). 'The Deteriorating Administrative Efficiency of the US Health Care System ', TheNew EnglandJournal of Medicine. This content downloaded on Mon, 24 Dec 2012 16:11:43 PM All use subject to JSTOR Terms and Conditions

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