Peter Van Doren joins us this week to talk about health care economics. We talk about risk aversion, risk neutrality, expected value statements, guaranteed renewable care, the ACA as a health care redistribution program, and health-status insurance. How much should we spend on health care, and how would we know the answer to that question?
Show Notes and Further Reading
Van Doren mentions “The Market for Lemons,” (1970) a fascinating concept and paper by George Akerlof.
Mark Pauly’s 2003 paper “Incentive-Compatible Guaranteed Renewable Health Insurance” is mentioned several times in the episode.
Van Doren also talks about John Cochrane’s writings on health-status insurance. Here is a Cato Policy Analysis from 2009 on the topic.