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The Economics of New Health TechnologiesIncentives, organization, and financing$
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Joan Costa-Font, Christophe Courbage, and Alistair McGuire

Print publication date: 2009

Print ISBN-13: 9780199550685

Published to Oxford Scholarship Online: February 2010

DOI: 10.1093/acprof:oso/9780199550685.001.0001

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Insurance and new technology

Insurance and new technology

(p.75) Chapter 5 Insurance and new technology
The Economics of New Health Technologies

Mark V. Pauly

Adam Isen

Oxford University Press

There is a correlation between growing real income and growing medical spending, but the process that might link the one with the other is unknown. This chapter explores whether and how the linking mechanism is affected by health insurance. It hypothesizes that changes in health insurance in individual countries and variations in health insurance across countries might be expected to influence the pace, shape, and cost of technological change. It derives some economic models of the relationship between insurance, and the demand for and supply of new technology in a market-based setting with a private supply of both medical care and insurance.

Keywords:   health insurance, technological change, economic models, medical care, medical spending

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