The political economy of the NHS: individualist justifications of collective action.

Abstract

The paper outlines some of the main ways in which economists have argued a system of collective health care can be justified from a broadly individualistic position. It sets out the value judgments and technical conditions which generate the conclusion that competitive markets maximise welfare and then considers the reasons why these conditions may not apply in the health area (imperfections in supply, uncertainty, externalities). Particular attention is given to the arguments which rest on altruistic 'caring preferences'. Various sources of non-market (collective) failure are then identified, as countervailing argument.