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  • Print publication year: 2020
  • Online publication date: May 2020

6 - Theory of Political Markets in Healthcare

from Part III - Political Institutions and Health


As we document in Chapter 1, as nations develop economically, healthcare becomes a major focus of government responsibility.1 More specifically, in 2018, 60 per cent of Americans agreed on increasing federal healthcare government responsibility.2 Across OECD countries, health expenditure is the most dynamic component of public expenditure. This expansion in government spending coincides with the democratisation of health systems, or the increasing collective decision-making in which patient citizens (PCs) indirectly (by electing the right representatives) make choices among competing projects. Such choice of PCs on the demand side is complemented with competition between Special Interest Groups (SIGs) in delimiting policies. In contrast, the supply side refers to the administrative procedures, ideological affiliation and other feature that define the selection of candidates and their policies.