Moving equilibria in the public health care sector: a low-quality trap and a resolution (Q871414)

Summary: This paper demonstrates the existence, in a particular subset of the Turkish public health care sector, of equilibria moving towards a low-quality trap over time. The dynamics of the movement in question hinges, in part, on the socially necessary but demographically asymmetric burden, on some public health care institutions, of providing affordable health care to certain sections of the population. The paper formulates a policy option that could help the sector to escape the trap, moving the sector towards high quality-high welfare equilibria.