Kenneth Arrow's Theory Of Demand For Health Care

1066 WordsMar 23, 20165 Pages
Kenneth Arrow’s Theory of Demand for Health Care Kenneth Arrow’s classic 1963 article, ‘Improbability and the Welfare Economics of Health Care’ is bright, and leading the economic vision of the many changes in the American health care system (Ruger 581). The health economics that has emerged, based on the demand of the market, are supplies, goods, and services. This theory, of our health care economy, is through market prices. There is no other theory, that of Kenneth Arrow, that makes a similar model of both supply and demand. Arrow’s other theories depend on the characteristics outside patients’ choices, values, principles, and preferences. The allocation could be reached, if the government used tax transfer wealth, to restore market equilibrium for improving the people’s quality of service in healthcare. Kenneth Arrow began to figure out how to engage possible uncertainty, into economic decisions and theories. The government allocation is optimal in order to reach market equilibrium. The government allocation also facilitates the market toward more stability and also encourage the redistribution of wealth and transference of goods (Greenberg & Lowrie 879). The problem with this condition, which lacks external objectives, values, and norms, is that an individual deciding their healthcare service is impacted by those objectives, values, and norms. Therefore, the economy of healthcare should be concerned about their objectives, values, and norms or become

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