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[Joseph_E._Stiglitz,_Carl_E._Walsh]_Economics(Bookos.org) (1)

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POLICY ANALYSIS

Washington, D.C., is home to many research groups that focus

on government programs and policies. Among the better

known are the Brookings Institution (www.brookings.org), the

American Enterprise Institute (www.aei.org), and the Urban

Institute (www.urban.org). These institutions post on their

Web sites research and policy pieces dealing with major publicsector

issues and debates. Some, like the American Enterprise

Institute, are associated with conservative views. Others, such

as the Brookings Institution, tend to be associated with more

liberal views. In any case, the best of these institutions

provide thoughtful and careful analyses of major economic

policy issues.

shortages in Canada are likely to occur. Such shortages are particularly likely if U.S.

manufacturers carry out their threat to stop shipping to Canadian pharmacies that

sell to the United States.

Reformers cite four major tasks that remain on the health care agenda:

1. Reducing the number of uninsured Americans, particularly through

programs targeted at the unemployed and at children.

2. Containing the soaring costs of health care in ways that are socially acceptable.

In many countries, health care benefits are rationed to contain costs; that is,

government programs provide assistance only to some of those who need it.

For example, those over eighty-five years old may not be eligible for a hip

replacement or must wait until all those who are younger and need the

surgery get it.

3. Developing programs for nursing home care; today, many of the elderly

must rely on Medicaid, the government program for low-income elderly, for

long-term care.

4. Promoting healthy habits (e.g., better diet and more exercise), while discouraging

activities such as smoking that are known to cause disease. Medical

care is only one factor affecting health, and perhaps not the most important.

Expenditures in broader areas of living and the environment may more effectively

improve health status in general than increased spending targeted at

medical care.

400 ∂ CHAPTER 17 THE PUBLIC SECTOR

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