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Jun Ho Chong Sample Question 2 (1) - Word (Unlicen... Insert Design File Layout References Home Mailings Review View Help Te L A | B U - abs x x Paragraph Styles Editing Paste A A A À À A Clipboard 5. A country has a growing number of cases of Marspox, a disease for which a vaccine was recently developed The government wants to encourage more people to vaccines so that it doesn't turn into an epidemic. It is currently debating two proposals: one that creates a maximun price that can be charged for the vaccine, to make it more affordable, another that spends taxpayer money to subsidize vaccines for everyone. Which of these policies will be more effective? Why? Font age 1 of 1 522 words E English (United States) DE E --

Answer 1

Subsidizing is direct benefits transfer and has historically and empirically seen great benefits in implementation from usecases like India and Bangladesh with scattered population as well with high density and high disease prine nations. Secondly subsidies lead to overall cost reduction on per capita basis and create implied effect of vaccination as people are incentivized.

On the contrary setting price caps often lead to ethical breaches by drug distribution companies and clinical institutions which cause unprecedented prices citing demand issues as there is assymetric information available. This causes implementation lags and policy lags due to amendments and doesn't motivate lowest quintile of population to get vaccination and thus impact gets minimised.

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