Huh? Why would single-payer have that result? This makes no sense. It looks to me like Mankiw is being dangerously slippery on the extremely important differences between single-payer and real socialized medicine.

Though I would add that I agree with Zach's overall point when he says, "But I don't think that the study in question necessarily leads us down this road" to single-payer. That one policy has certain sorts of difficulties does not at all entail that another policy won't have other difficulties of its own. The badness of one policy does not preclude the worseness of another.

So, a potential solution to this proposed problem would be to leave the primary decision making in health care with, oh, let's say doctors.

To use the same metaphor Josh used yesterday...when you go in to a mechanic for a checkup, and they tell you something's wrong...usually you try to listen to the mechanic.

Also, it's probably worth noting that right now, the exact situation Mankiw refers to as being a problem already exists. It's just thus far only a few people have their decisions mandated by Congress...a significantly larger number have their health care decisions made for them by the accountants at whatever insurance company they have. I can tell that from personal experience...being stuck waiting a month to see a doctor while a person is in pain because the HMO won't approve you going to any other doctor and that doctor is on vacation is really unpleasant.

To use the same metaphor Josh used yesterday...when you go in to a mechanic for a checkup, and they tell you something's wrong...usually you try to listen to the mechanic.

Usually, but not always. And when you do listen, it's often at your own out-of-pocket expense.

Routine auto maintenance, after all, is almost universally expected to be an individual expenditure. Auto insurance exists for unexpected costs, not oil changes and new tires. Minor damage is often paid for without going to the trouble of making claims. Yet we've grown accustomed to the idea of health insurance that covers everything down to regular checkups.

And even when the auto owner may want to listen to the mechanic, it's not uncommon for the auto insurer to simply decline the expense of fixing it, and opt instead to total the car for a lump sum. The owner then can either take the money, or pay to rebuild the car at his own expense.

Medical decisions already rest in doctors' hands. They just get second guessed a lot because those decisions are expensive, and nobody involved (patient or insurer) is anxious to shell out the money to pay for them.