Kenneth Arrow and the Changing Economics of Health Care: “Why Arrow? Why Now?”

Document Type

Article

Publication Date

10-2001

Journal Title

Journal of Health Politics, Policy and Law

ISSN

0361-6878

DOI

10.1215/03616878-26-5-835

Abstract

Why Arrow? Why now? Kenneth Arrow is a Nobel laureate and one of the most important economists of our time. “Uncertainty and the Welfare Economics of Medical Care” (Arrow 1963) is a landmark contribution to health economics that is required reading in health economics, health policy, and health law courses. While most of Arrow’s economic insights transcend time and can fit comfortably with modern economic theory, his institutional analysis of medical markets is layered in amber. This turns out to be a blessing. By offering a point of reference that only time and distance can provide, Arrow’s interpretation of medical markets circa 1960 affords an extraordinarily useful framework for understanding the health care economy and health care policy of today.

First Page

835

Last Page

849

Num Pages

15

Volume Number

26

Issue Number

5

Publisher

Duke University Press

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