Question
Suppose the demand for health care is inelastic, i.e., the elasticity is zero. What is the socially optimal coinsurance rate? (Recall that coinsurance is the
Suppose the demand for health care is inelastic, i.e., the elasticity is zero. What is the socially optimal coinsurance rate? (Recall that coinsurance is the share of medical bills that the individual pays out of pocket.) Explain.
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Macroeconomics
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
1st Edition
978-0132109994, 0132109999
