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. 1988 Dec;7(4):321-36.
doi: 10.1016/0167-6296(88)90019-7.

Optimal reimbursement health insurance and the theory of Ramsey taxation

T J Besley

Optimal reimbursement health insurance and the theory of Ramsey taxation

T J Besley. J Health Econ. 1988 Dec.

Abstract

This paper explores the trade-off between risk sharing and the incentives to consume increased medical care inherent in reimbursement insurance. The results for the theory of reimbursement insurance are compared with those on Ramsey taxation. It is shown that there is a close formal analogy and interpretations are given.

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