BiblioVault - Books about Rates

Democracy and Regulation

How the Public Can Govern Essential Services

Greg Palast, Theo MacGregor, and Jerrold Oppenheim

Pluto Press, 2002

Hospital Costs and Health Insurance

Martin Feldstein

Harvard University Press, 1981

The cost of hospital care has grown so rapidly in the past thirty years that it is threatening to bend our economy completely out of shape. A hospital bed that cost $16 per day in 1950 cost $214 per day by 1978—an increase of more than 1200 per cent! What is the cause of this fantastic inflation, which has been far higher than for any other major good or service? In this pathbreaking book, Martin Feldstein sets forth a novel explanation, provides empirical support for it, and suggests some remedies for the problem.

Feldstein demonstrates a complex relationship between the growing sophistication of hospital care, physician and patient demand, third-party insurance payments, and the tax treatment of insurance premiums. This last, he argues, is the key to the problem in that government policies stimulate the purchase of excessive insurance by a tax deduction and exclusion that cost the Treasury about $10 billion a year. To mitigate the increasingly severe burden of hospital costs, Feldstein recommends that this preferential tax treatment be ended. In its place, he proposes a new national health insurance plan that would give incentives to physicians and their patients to economize on costs and at the same time provide adequate coverage for major illnesses.

[more]

Social Experimentation

Edited by Jerry A. Hausman and David A. Wise

University of Chicago Press, 1985

Since 1970 the United States government has spent over half a billion dollars on social experiments intended to assess the effect of potential tax policies, health insurance plans, housing subsidies, and other programs. Was it worth it? Was anything learned from these experiments that could not have been learned by other, and cheaper, means? Could the experiments have been better designed or analyzed? These are some of the questions addressed by the contributors to this volume, the result of a conference on social experimentation sponsored in 1981 by the National Bureau of Economic Research.

The first section of the book looks at four types of experiments and what each accomplished. Frank P. Stafford examines the negative income tax experiments, Dennis J. Aigner considers the experiments with electricity pricing based on time of use, Harvey S. Rosen evaluates housing allowance experiments, and Jeffrey E. Harris reports on health experiments. In the second section, addressing experimental design and analysis, Jerry A. Hausman and David A. Wise highlight the absence of random selection of participants in social experiments, Frederick Mosteller and Milton C. Weinstein look specifically at the design of medical experiments, and Ernst W. Stromsdorfer examines the effects of experiments on policy. Each chapter is followed by the commentary of one or more distinguished economists.

[more]