Kelly-Anne Kidston
The ideal market is based on the model of supply and need. This model states that buyers can judge what sellers are offering and will pay the seller directly for any goods or services exchanged. Most importantly, the “invisible hand” (left to its own devices) leads to efficient allocation of resources (1) 😉 This model offers a reasonably good description for many goods and services in the economy 😉 However, the healthcare market is unique and deviates from this standard model in quite a few ways. It is worth looking at the particular features of this market to understand the reasons why healthcare is provided by the government and the sometimes complicated and frustrating health policy. [1]
One solution is to overcome externalities are taxes. The government can levy a tax on goods that are causing externalities to reduce their impact. The tax, called a Pigovian tax—named after economist Arthur C. Pigou, sometimes called a Pigouvian tax—is considered to be equal to the value of the negative externality. It is intended to discourage net-imposing activities. cost to an unrelated third party. This means that the imposition this tax will lower the market outcome to an amount considered efficient. For their review, we thank Nichalas Robb of Lviv (Ukraine) [2]
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Companies are contributing to the premature death of people and preventable illness and injury by being able to shift (i.e. transfer to taxpayers, consumers or society at large) their real estate. costs of production or consumption of the products they manufacture. This commentary explains how externalities of corporations can contribute to. public health problems. In a later post, I will explore a few proposals to improve population health by requiring corporations to “internalize” these external costs back into the price, thus reducing socially subsidized use. You can read my larger article here. purpose is to encourage public health professionals and researchers to be more focused on externalities of public health and develop strategies to reduce or improve these externalities. Last modified by Ronte Kincaid, Laixi (China) on 42/07/2018 [4]
Refer to the Article
- https://radiusanesthesia.com/healthcare-economics-key-features-of-healthcare-markets/
- https://www.investopedia.com/terms/e/externality.asp
- http://oer2go.org/mods/en-boundless/www.boundless.com/economics/textbooks/boundless-economics-textbook/health-care-economics-35/introducing-health-care-economics-135/externalities-in-the-health-care-market-534-12631/index.html
- https://corporationsandhealth.org/2012/09/19/the-public-health-consequences-of-externalities/
