The Concise Encyclopedia of Economics
FEATURED ARTICLE

Health Insurance

John C. Goodman

The Birth of the "Blues"

In the 1930s and 1940s, a competitive market for health insurance developed in many places in the United States. Typically, premiums tended to reflect risks, and insurers aggressively monitored claims to keep costs down and prevent abuses. Following World War II, however, the market changed radically. Hospitals had created Blue Cross in 1939, and doctors started Blue Shield at about the same time. Under pressure from hospital and physician organizations, the"Blues" won competitive advantages from state governments and special discounts from medical providers....

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ALSO OF INTEREST

Global Warming: A Balance Sheet

Thomas Gale Moore

Environmental Quality

Terry L. Anderson

Pollution Controls

Robert W. Crandall

Property Rights

Armen A. Alchian

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FEATURED BIOGRAPHY

James M. Buchanan

(1919-2013)

James Buchanan is the cofounder, along with Gordon Tullock, of Puclic Choice Theory. Buchanan entered the University of Chicago's graduate economics program as a 'libertarian socialist.' After six weeks of taking Frank Knight's course in price theory, recalls Buchanan, he had been converted into a zealous free marketer... READ MORE