CAM DONALDSON is Health Foundation Chair in Health Economics and ESRC Advanced Institute of Management Research (AIM) Public Service Fellow, Centre for Health Services Research, School of Population & Health Sciences and Business School (Economics), University of Newcastle upon Tyne, UK.KAREN GERARD is Senior Lecturer, Health Care Research Unit, Faculty of Medicine, Health and Life Sciences, University of Southampton and Senior Visiting Fellow, Health Economics Research Centre, Institute of Health Sciences, University of Oxford, UK.CRAIG MITTON is a Research Scientist in the Centre for Healthcare Innovation and Improvement in the British Columbia Research Institute for Children's and Women's Health and Assistant Professor in the Department of Health Care and Epidemiology at the University of British Columbia, Canada.STEPHEN JAN is Lecturer, Health Economics and Financing Programme, Health Policy Unit, London School of Hygiene and Tropical Medicine, UK.r>VIRGINIA WISEMAN is Lecturer in Health Economics, Gates Malaria Programme, Health Policy Unit, London School of Hygiene and Tropical Medicine, UK.

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• PART ONE: MARKETS AND MARKET FAILURE IN HEALTH CAREHealth Care Financing Reforms: Moving into the New MilleniumMarkets and Health Care: The Basic TheoryMarket Failure in Health CarePART TWO: HEALTH CARE SYSTEMS AND THEIR OBJECTIVESMethods of Funding Health CareEconomic Objectives of Health CarePART THREE: A REVIEW OF EMPIRICAL FINDINGSCountering Consumer Moral HazardCountering Doctor Moral HazardCountering Moral Hazard in the Hospital SectorAchieving EquityPART FOUR: FUTURE CHALLENGESFuture Considerations: Setting The Health Care BudgetHealth Care Financing Reforms: Where Are We Now?