Problem
Provide short answers to the following questions.
I. Consider the tax deduction for healt insurance premiums
i. Why is it regressive?
ii. How might it contribute to the medical inflation?
II. What did Martin Feldstein argue about the welfare effects of the 1965 amendments to the Social Security Act? How would you revise Feldstein's conclusions in light of the evidence revealed by the RAND Health Insurance Experiment?
III. What are two tools that can ve used to address adverse selection in health insurance markets? Which of these tools was prohibited by the Affordable care act?
IV. Compare and contrast the views of Fuchs and Grossman about the relationship between education and health.