A recent study by Finnish Centre of Excellence in Tax Systems Research investigates the drug prescriptions made by physicians in the private and public sector to treat high cholesterol and type two diabetes. The results are clear: physicians working in the private sector are significantly more likely to prescribe their patients expensive medication, even though there are more affordable approved alternatives available.
The concept of pre-distribution has gained popularity in the policy discourse, with some arguing that it is superior to conventional redistribution through tax and transfer.