EC248 Lecture Notes - Lecture 10: Unit, Allocative Efficiency, Public Finance
Document Summary
Ec 248 lesson 10 the flow of funds within a health care system. Financing: raising funds required to pay for the operation of the health care system. Funding: allocation of revenue to alternative activities within the health care sector. Remuneration: compensation to individuals employed in the health care sector. Efficiency and equity in pure private and pure public systems of finance. Three caveats to mention about the analysis: can each include a tremendous variety of possible designs, (ex. Private finance systems can rely on private insurance our out of pocket payments, varying with respect to the calculation of premiums, regulations etc. Public finance systems can use taxes or social insurance contributions, varying with respect to types of taxes, structure of tax schedules, regulation, etc. Think in terms of technical and cost-effectiveness efficiency in collecting revenue, and allocative efficiency in responding to the risk preferences of members of society.
