6/09/2011

Kenneth Arrow Was Here (Editorial) HealthCare (4)

June 9, 2011, 5:34 pm

Kenneth Arrow Was Here

Some readers ask why my argument that relatively centralized systems work better for health care  (nyt) than the “free market” isn’t an argument for government ownership of everything.
The answer is that health care is different: it’s a sector in which basically every market failure you can think of takes place. And we’ve known that since Kenneth Arrow’s classic analysis (nyt) half a century ago.
It’s shocking, though not surprising, that we keep having to relearn this basic point.

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