Two Wrongs Do Not Make a Right
نویسنده
چکیده
491 National Tax Journal Vol. LIX, No. 3 September 2006 Abstract This paper analyzes proposals to remedy tax–induced distortions in health care by using new tax incentives and retaining all of the existing distortionary tax incentives. In the process of remedying some distortions, this approach magnifi es others—most notably increasing the total tax preference for health care. The paper considers two examples—the Bush administration’s FY 2007 budget proposal and a plan by Cogan, Hubbard and Kessler (2005)—and shows that both could result in higher health spending and reduced welfare. Finally, the paper discusses the circumstances in which tax incentives could be warranted to remedy market failures in health insurance.
منابع مشابه
Two Wrongs Do Not Make a Right: Flaws in Alternatives to Fee-for-Service Payment Plans Do Not Mean Fee-for-Service Is a Good Solution to Rising Prices; Comment on “Fee-for-Service Payment - An Evil Practice That Must Be Stamped Out?”
Professor Naoki Ikegami’s “Fee-for-service payment – an evil practice that must be stamped out” summarizes many of the failings of alternatives to fee-for-service (FFS) payment systems. His article also offers several suggestions for improving FFS systems. However, even powerful arguments against many of the alternatives to FFS, does not make a convincing argument for FFS systems. In addition, ...
متن کاملCan Two Wrongs Make a Right? Accidental Accuracy in Predictions of Others’ Preferences Under Uncertainty
We investigate the accuracy of people’s predictions of others’ preferences under uncertainty. We focus on two key steps in prediction. First, predictors must anticipate others’ beliefs about the likelihood of uncertain events. Second, predictors must anticipate the weight that beliefs will have on others’ choices. We find that predictors typically err at both steps. Intriguingly, the errors the...
متن کاملWhy item parcels are (almost) never appropriate: two wrongs do not make a right--camouflaging misspecification with item parcels in CFA models.
The present investigation has a dual focus: to evaluate problematic practice in the use of item parcels and to suggest exploratory structural equation models (ESEMs) as a viable alternative to the traditional independent clusters confirmatory factor analysis (ICM-CFA) model (with no cross-loadings, subsidiary factors, or correlated uniquenesses). Typically, it is ill-advised to (a) use item par...
متن کامل