ABSTRACT

Regulation may also arise to correct inequity, although, as discussed in Chapter 1, it is usually rather dif cult to disentangle inequities from inef ciencies in health markets. Most observed inequities (for example, lack of access to care for some part of the population) are also inef ciencies (a failure of the health system to address high priority demands from a social welfare perspective). For this reason we will not separately address ef ciency focused regulation and equity focused regulation, although it is clear that some of the regulations we describe below address both kinds of problem.