Progressivity, horizontal equity and reranking in health care finance: a decomposition analysis for the Netherlands

This paper employs the method of Aronson et al. (1994) to decompose the redistributive effect of the Dutch health care financing system into three components: a progressivity component, a classical horizontal equity component and a reranking component. Results are presented for the health care financing system as a whole, as well as for its constituent parts. A final section sets out to uncover the relative importance (in terms of their effects on progressivity, horizontal equity and reranking) of the key institutional features of one component of the Dutch system - the AWBZ social insurance scheme. (C) 1997 Elsevier Science B.V.