Today 12:34 pm
Graduate level economics, JuCo...ROG62 » 13 minutes ago » wrote: ↑ probably saw it somewhere on the interweb…now it’s the catchphrase of the day…
Not everyone is as **** ignorant as you.
[Kenneth Arrow]
was an American economist who co-won the Nobel Memorial Prize in Economic Sciences in 1972 for his pioneering contributions to general economic equilibrium theory and welfare theory. [1, 2, 3]
## Contributions to Health EconomicsWhile Arrow is famous for general equilibrium and his "Impossibility Theorem," his 1963 landmark paper, Uncertainty and the Welfare Economics of Medical Care, effectively founded the entire field of health economics. [4, 5, 6, 7] * *
Market Failure: He argued that healthcare cannot operate like a standard competitive market due to pervasive uncertainty (not knowing when you will get sick) and asymmetric information (doctors knowing more than patients). [8, 9] *
Inelasticity Connection: This uncertainty and the vital necessity of care are what structurally drive the price inelasticity of healthcare demand. Patients cannot easily reduce consumption when prices rise, creating a unique economic environment that justifies insurance markets and government intervention.* [1] [https://www.britannica.com](https://www.britannica.com/money/Kenneth-Arrow)
[2] [https://corporatefinanceinstitute.com](https://corporatefinanceinstitute.com/r ... eth-arrow/)
[3] [https://www.econlib.org](https://www.econlib.org/library/Enc/bios/Arrow.html)
[4] [https://www.nobelprize.org](https://www.nobelprize.org/prizes/econo ... row/facts/)
[5] [https://www.hetwebsite.net](https://www.hetwebsite.net/het/profiles/arrow.htm)
[6] [https://www.cato.org](https://www.cato.org/commentary/kenneth ... -you-think)
[7] [https://santosh-shevade.medium.com](https://santosh-shevade.medium.com/heal ... 9166dc859c)
[8] [https://www.cato.org](https://www.cato.org/commentary/kenneth ... -you-think)
[9] [https://medium.com](https://medium.com/@Mehrsa.MD/from-nobe ... d4ec02114c)