Abstract
Unless an insurance scheme discussed here accompany them, Push and Pull Mechanisms are showed to create disincentives for investments in available treatment technologies to eradicate orphan diseases. In a formal model of a government's optimal allocation of resources, we show that the higher the odds of appearance of an innovative treatment, as occurring when those mechanisms are implemented, the lower the optimal provision of current treatments and other health expenditures. We also show that the higher the opportunity cost of money of current investments, the lower the optimal provision current treatments and other health expenditures. An insurance scheme remedies those issues.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call