blog




  • Essay / Positive Externalities in Health Care - 715

    Most positive externalities do not need to be mitigated. However, subsidies would help those directly and indirectly affected. “Subsidies involve the government paying part of the cost to the company (Pettinger, nd).” When the price of a good falls, it encourages consumption. “A subsidy shifts the supply curve to the right (Pettinger, nd)”. Universal, free health care would help ensure that everyone is vaccinated (Pettinger, n.d.). “This prevents the spread of infectious diseases, which benefits everyone (Pettinger, nd).” This therefore creates a personal advantage due to other people being healthy (Pettinger, nd). Positive externalities can also create a free-rider problem. “For example, vaccinated individuals reduce the risk of contracting the disease in question for everyone else around them, and at high levels of vaccination, society can experience important health and well-being benefits ; but any individual can refuse vaccination, while avoiding illness by “profiting” from the costs borne by others (Ditah,