Scandinavian Working Papers in Economics

HERO Online Working Paper Series,
University of Oslo, Health Economics Research Programme

No 2000:9: Private health care as a supplement to a public health system with waiting time for treatment

Michael Hoel () and Erik Magnus Sæther
Additional contact information
Michael Hoel: Department of Economics, Postal: University of Oslo, P.O. Box 1089 Blindern, NO-0317 Oslo, Norway
Erik Magnus Sæther: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, N-0349 Oslo, Norway

Abstract: In this article the authors Michael Hoel and Erik Magnus Sæther consider an economy where most of the health care is publicly provided, and where there is waiting time for several types of treatments. Private health care without waiting time is an option for the patients in the public health queue. This article shows the effects of a tax (positive or negative) on private health care, and derives the socially optimal tax/subsidy. Finally, a discussion of how the size of the tax might affect the political support for a high quality public health system is provided.

Keywords: Private health care; public health care; health queues

JEL-codes: I11; I18

35 pages, July 1, 2009

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