Empirical study of the National Health Service in U.K. and the U.S. Medical Care System

Abstract

This paper presents a feasibility study of the mechanism of the National Health Services in the U.K. and the U.S. Medical Care System respectively. The issue is empirically examined from four aspects, namely externalities, adverse selection and moral hazard, information asymmetry, and market failure. It comes to the conclusion that with the practical guidance of government intervention, it is possible to cope with the agency problems with high efficiency.