02 Jun Question a Discuss the factors that may lead one na
Question
a Discuss the factors that may lead one nation to spend more per person on health care than another nation. What are the implications of finding health care to be income elastic in cross-national studies? When health care is income elastic, will richer countries tend to have a higher or lower proportion of GDP spent on health care?
b A common thesis in economics is that markets are efficient unless characteristics are present that lead to market failure. What sorts of market failure in the health economy can be used to justify adoption of universal NHI? What kinds of government failure can be used to argue against this proposal?
c Use the demand supply framework in (upload 1-1) to explain how increased cost sharing could lead to lower utilization and spending on health care.
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