This paper employs the method of Aronson et al. (1994) to decompose the redistributive effect of the Dutch health care financing system into three components: a progressivity component, a classical horizontal equity component and a reranking component. Results are presented for the health care financing system as a whole, as well as for its constituent parts. A final section sets out to uncover the relative importance (in terms of their effects on progressivity, horizontal equity and reranking) of the key institutional features of one component of the Dutch system — the AWBZ social insurance scheme.

Health care finance, Horizontal equity, Income redistribution, Progressivity
Personal Income, Wealth, and Their Distributions (jel D31), Equity, Justice, Inequality, and Other Normative Criteria and Measurement (jel D63), Externalities; Redistributive Effects; Environmental Taxes and Subsidies (jel H23), Government Expenditures and Health (jel H51), Health: General (jel I10)
dx.doi.org/10.1016/S0167-6296(97)00003-9, hdl.handle.net/1765/11414
Journal of Health Economics
Erasmus School of Economics

Wagstaff, A, & van Doorslaer, E.K.A. (1997). Progressivity, horizontal equity and reranking in health care finance: a decomposition analysis for the Netherlands. Journal of Health Economics, 16(5), 499–516. doi:10.1016/S0167-6296(97)00003-9