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Streetwise Professor

March 21, 2010

Incentives Matter

Filed under: Economics,Politics — The Professor @ 7:48 pm

My new virtual bud, fellow Chicagoan, and long-time CME floor trader Jeff Carter has an excellent post about health care at his Points and Figures blog.  Two word summary: incentives matter.  Jeff’s story is an excellent illustration of the argument in my post from earlier today about how policy should be aimed at encouraging purchase of high deductible, catastrophic coverage plans.  These provide insurance against the kinds of risk people should insure against, while giving them the incentive to consume routine health care services wisely and frugally.  That’s what we should be aiming for, not the monstrosity currently slouching through the House.

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    Comment by Kruglikov — March 27, 2010 @ 1:33 pm

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