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Journal of Economic Perspectives: Vol. 8 No. 3 (Summer 1994)
JEP Volume. 8, Issue 3 | 
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Public Finance Principles and National Health Care Reform
Article Citation
Zeckhauser, Richard. 1994. "Public Finance Principles and National Health Care Reform."
Journal of Economic Perspectives,
8(3): 55-60.
DOI: 10.1257/jep.8.3.55
DOI: 10.1257/jep.8.3.55
Abstract
Public finance principles, though usually treated as a minor consideration, lie at the heart of effective national health care reform. Four principles are discussed: charge for a service where its cost is created; distinguish rents, resources, and transfers; know what services cost and pay accordingly; balance distributional and equity concerns. The principles' implications include: since employment does not much affect health costs, financing (particularly of incremental insureds) need not be employer-based; health resources being immobile, many cutbacks in expenditure will not reflect real resource savings; and health care financing should mesh with an overall program of taxation and expenditure.
Article Full-Text Access
Full-text Article (Complimentary)
Authors
Zeckhauser, Richard (Harvard U)
JEL Classifications
I18: Health: Government Policy; Regulation; Public Health
I11: Analysis of Health Care Markets
I11: Analysis of Health Care Markets
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