This chapter will deal with the actual and efficient functioning of health insurance in settings where risk (expected value) of medical spending or insurance benefits varies across individuals at a given point in time or over time for a given individual. It will deal with equilibrium in...

This study summarizes what we know and do not know, in both economic theory and empirical practice, about the potential to more closely approximate competitive markets in healthcare and insurance in ways that will do more good than harm to the current dysfunctional system. The alternatives to...