tag:blogger.com,1999:blog-5043138489010794057.post6290853552626390325..comments2024-03-27T15:57:09.192+05:30Comments on Urbanomics: When markets fail in education and healthUrbanomicshttp://www.blogger.com/profile/16956198290294771298noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5043138489010794057.post-87239761760925601712009-07-25T19:19:12.823+05:302009-07-25T19:19:12.823+05:30a standardized national testing is only a better a...a standardized national testing is only a better alternative than not having one. fundamentally, it sets the best possible measure of evaluating student performance. in its absence, the market ends up using other less desirable markers to distinguish between students, leaving the students from the poorer schools with no means to signal their competence and quality. <br /><br />after all, occasionally students from government schools too make it into IITs and other professional courses. imagine admitting students into these institutes based on their respective school marks (with their different curriculums/boards etc), which would leave the icse/cbse and other central board children handicapped with respect to atleast certain state boards. it would also only add another layer of handicap to the bright students from the poorer schools. <br /><br />but whatever we do, it is inevitable that the "tipping point-based segregation effect" comes into play, resulting in the emergence of a few elite schools and a few very poor schools, with rest in the middle. i am inclined to believe that no amount of improvements in the quality of teaching can prevent this macro-outcome from emerging. there will be good schools and there will be bad schools, as long as there are students with varying abilities and economic/social backgrounds!<br /><br />the reasons why government schools do not do as well as private schools will be reserved for another post.Urbanomicshttps://www.blogger.com/profile/16956198290294771298noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-58712585048103416332009-07-25T18:43:25.991+05:302009-07-25T18:43:25.991+05:30theoretically atleast, the most optimal insurance ...theoretically atleast, the most optimal insurance market should be one where all the risks are pooled into a single basket. in other words, a universal (covering all categories of citizens), single-payer insurance (for a basic set of claims), though with services delivered by competing insurers (who could also provide top-ups to differentiate themselves form their competitors). This would eliminate the incentive distortions that arise from the possibility of cherry-picking of customers by insurers. <br /><br />In other words, the optimum arrangement is to have an insurance system that pools the fullest possible spectrum of risks. Wherever, this is not possible, the government (or any other) interventions should be primarily to correct market failures that result in a category of customers being left out or inadequately covered.Urbanomicshttps://www.blogger.com/profile/16956198290294771298noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-69026729367324542872009-07-25T08:30:08.464+05:302009-07-25T08:30:08.464+05:30In regd to health - you said that the market does ...In regd to health - you said that the market does not result in good health outcomes. It certainly seems to be improving the welfare of the Doctors and the Insurance comapanies. However, it has worsened the welfare of sick/old patients. Can the market correct itself? Self correcction is not evident. Hence the need for interventions. What level of intervention? Just enough. What is optimal intervention? The optimum level lies somewhere in the path of the oscillating pendulum.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-68741231766691684142009-07-25T08:24:37.704+05:302009-07-25T08:24:37.704+05:30You said: "standardized national testing, tha...You said: "standardized national testing, that would provide an alternate way to enhance performance"<br /><br />Evidence of the way selective schools perform better in EAMCET (and Ramayya in IIT)goes against what you have stated.The performance of poorer schools and colleges continue to remain poor. Is seggregation an issue? or lack of proper teaching effort the issue?<br /><br />This takes us to the debate of why government schools dont do as well as private schools. It might be a combination of factors. What are more important? What need to be tackled first? Any guesses?Anonymousnoreply@blogger.com