The introduction analyzes the highly influential article “Uncertainty and the Welfare Economics of Medical Care,” by economist Kenneth J. Arrow. According to Arrow, there have been growing clinical capabilities of medical care as well as the acceleration of medical care's claims on the economy's resources. Arrow argues that the resources for medical markets cannot insure all medical risks, and that there is uncertainty of medical information about costs and benefits. An example would be when a patient seeks information from a physician yet the information about medical contingencies as well as the corresponding payments for these contingencies is impossible to acquire. This chapter considers economic arguments in two different medical care literatures: firstly, the effects of selection in individual or small-group insurance markets, and secondly, moral hazards.
Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .