Extensions to decomposition of the redistributive effect of health care finance
Article first published online: 25 SEP 2008
Copyright © 2008 John Wiley & Sons, Ltd.
Volume 18, Issue 10, pages 1176–1187, October 2009
How to Cite
Zhong, H. (2009), Extensions to decomposition of the redistributive effect of health care finance. Health Econ., 18: 1176–1187. doi: 10.1002/hec.1420
- Issue published online: 3 SEP 2009
- Article first published online: 25 SEP 2008
- Manuscript Accepted: 20 AUG 2008
- Manuscript Revised: 18 AUG 2008
- Manuscript Received: 24 FEB 2008
- redistributive effect;
- health-care financing
The total redistributive effect (RE) of health-care finance has been decomposed into vertical, horizontal and reranking effects. The vertical effect has been further decomposed into tax rate and tax structure effects. We extend this latter decomposition to the horizontal and reranking components of the RE. We also show how to measure the vertical, horizontal and reranking effects of each component of the redistributive system, allowing analysis of the RE of health-care finance in the context of that system. The methods are illustrated with application to the RE of health-care financing in Canada. Copyright © 2008 John Wiley & Sons, Ltd.