Concerns for Equity and the Optimal Co-Payments for Publicly Provided Health Care



a lot between different types of illnesses. Although the formal model used
in the present analysis only considers one type of illness, Propositions 2 and
3 suggest the following result: If a society becomes more concerned about
equity, it may be optimal to reduce co-payments for some types of treatments
but at the same time increase co-payments for other treatments.

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