Suppose a certain pharmaceutical drug has only one use: it is 100 percent effective at saving the

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Suppose a certain pharmaceutical drug has only one use: it is 100 percent effective at saving the life of someone afflicted with a centain rare disease. Given its effectiveness, patients who need it would purchase the drug even if its price increased dramatically. What are the efficiency implications of providing this drug to patients through a third-party payer?

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Public Finance

ISBN: 9780073511283

8th Edition

Authors: Harvey Rosen, Ted Gayer

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