Suppose you are recently hired as an economic analyst advising the Saskatchewan Minister of Health with respect to the health care initiatives. The head of the medical staff of the largest hospital in the province is lobbying for the new initiative to expand kidney dialysis and transplantation facilities, and he shows you several clinical research studies, which demonstrate the cost-effectiveness of a new transplantation technique compared to the old technique and to dialysis. By giving proof of cost-effectiveness, he is claiming that his initiative should be funded without further delay. Being an economic analyst, how would you reply?
It is very common to hear economists talk about the "equity-efficiency" trade-off. What do you mean by this trade off? Does this trade-off always exist in the health sector?