Abstract

This paper addresses the question of why a private good, such as health care, may be publicly provided and/or financed. In order to answer to this question, two different approaches are analysed: the traditional theory approach and the public choice approach. The first focuses on market and externalities. Further, an additional question is analysed: the opportunity to promote equality by publicly providing health care services. The second explains public health care provision as the result of a political process. In order to be re-elected, politicians offer the amount of public health care services that are preferred by the median voter.