This article (1991) is wonderful to understand the historical relationship between technological change, insurance, and medical costs in the US. The title is "The Health Care Quadrilemma: An Essay on Technological Change, Insurance, Quality of Care, and Cost Containment" (Burton Weisbrond, Journal of Economic Literature).
Notice that the historical trade off has been between more innovation and higher prices and less innovation and lower prices. The author presents a pretty interesting theoretical framework to understand the pricing mechanism in the health industry.
The author's argument has important implication for other industries as well, such as education. In fact, you will see the high contrast in the way prices are determined in the health care industry vs. in education.
The article stands out in the health economics literature I have read so far.
Notice that the historical trade off has been between more innovation and higher prices and less innovation and lower prices. The author presents a pretty interesting theoretical framework to understand the pricing mechanism in the health industry.
The author's argument has important implication for other industries as well, such as education. In fact, you will see the high contrast in the way prices are determined in the health care industry vs. in education.
The article stands out in the health economics literature I have read so far.
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