Flu vaccination has large external benefits, but many people do not get vaccinated. The government wants to raise the vaccination rate. Compare four ways to do it.
Subsidise clinics
- Patients: Lower prices make vaccination affordable.
- Society: Fewer flu cases and less pressure on hospitals.
- Taxpayers: The subsidy has an opportunity cost.
A subsidy shifts supply right, lowering price and raising quantity. It works best if price is the main barrier.
Offer free vaccines at public clinics
- Low-income households: No price barrier at all.
- Government: Higher cost than a partial subsidy.
- Uptake: Some people still avoid vaccines out of fear or lack of time.
Direct provision removes the price barrier completely, but costs more and does not change attitudes.
Require vaccination for some jobs
- Vulnerable patients: Health workers are less likely to pass on flu.
- Workers: Removes their choice, which some may resent.
- Enforcement: Needs checks and penalties to work.
Regulation changes behaviour directly, but only for the groups it covers, and it needs enforcing.
Run an information campaign
- Public: Corrects the belief that flu is harmless.
- Government: Cheaper than paying for every vaccine.
- Uptake: Results are uncertain and may be slow.
Information tackles the reason merit goods are under-consumed: people underestimate the benefit. Its effect is hard to predict.