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Vaccination versus "Wait and Treat": How to Subsidize Them?
Louis Eeckhoudt, Maurice Marchand, Pierre Pestieau and Gwenaël Piaser
The European Journal of Health Economics
Vol. 9, No. 1 (Feb., 2008), pp. 33-39
Published by: Springer
Stable URL: http://www.jstor.org/stable/40283694
Page Count: 7
You can always find the topics here!Topics: Vaccination, Copayments, Subsidies, Marginal costs, Diseases, Health insurance, Laissez faire, Health care economics, Immunization, Lotteries
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In this paper we discuss the application of different co- payment rates to alternative medical strategies. Two such strategies are considered: a "vaccination strategy", in which patients apply preventive measures before knowing if they have the disease, and a "wait and treat" strategy, in which patients are treated later only if they contract the disease. We show the second approach should be more generously subsidized by the regulator. This is, at least at first sight, a surprising result.
The European Journal of Health Economics © 2008 Springer