Optimal Rationing within a Heterogeneous Population.

Authors
Publication date
2016
Publication type
Journal Article
Summary A government agency delegates to a provider (hospital, medical gatekeeper, school, social worker) the decision to supply a service or treatment to individual recipients. The agency does not perfectly know the distribution of individual treatment costs in the population. The single-crossing property is not satisfied when the uncertainty pertains to the dispersion of the distribution. We find that the provision of service should be distorted upwards when the first-best efficient number of recipients is sufficiently high.
Publisher
Wiley
Topics of the publication
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