Appendix 2 : Economic Rationale for Public Policy to Address NCDs

  • Published 2011

Abstract

The economic rationale for public intervention in health can be formulated on both efficiency and equity grounds: the former, when private markets fail to function efficiently; the latter, when the social objectives of equity in access or outcomes are unlikely to be attained. This view does, however hinge on three critical assumptions: (i) this decision making is based on accurate—or “perfect”—information about the consequences of the decision; (ii) all the costs and benefits associated with the decision are carried by the person making the choice; and (iii) people act “rationally”—that they will always (consciously or unconsciously) weigh the costs and benefits of each decision they are to undertake and then choose the course of action that maximizes their expected net benefits (or “utility”).

Cite this paper

@inproceedings{2011Appendix2, title={Appendix 2 : Economic Rationale for Public Policy to Address NCDs}, author={}, year={2011} }