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The Economics of Health and Health Care

by: Folland, Sherman; Goodman, Allen C.; Stano, Miron

The Economics of Health and Health Care

by: Folland, Sherman; Goodman, Allen C.; Stano, Miron

ISBN 13:
9780131000674
ISBN 10:
0131000675
Edition: 4th
Format: Hardcover
Copyright: 01/01/2004
Publisher: Taylor & Francis
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Summary

For courses in Health Economics, Public Health, and Health Care Policy. This clear, step-by-step best-selling introduction to the economics of health and health care thoroughly develops and explains economic ideas and models to reflect the full spectrum of the most current health economics literature. It uses core economic themes as basic as supply and demand, as venerable as technology or labor issues, and as modern as the economics of information.

Preface

xxiii

PART I: BASIC ECONOMICS TOOLS

(72)

Introduction

(19)

The Relevance of Health Economics

(7)

The Size and Scope of the Health Economy

(6)

The Economic Side to Other Health Issues

(1)

Economic Methods and Examples of Analysis

(2)

Features of Economic Analysis

(1)

Examples of Health Economics Analysis

(1)

Does Economics Apply to Health and Health Care?

(1)

An Example: Does Price Matter?

(1)

Is Health Care Different?

(4)

Presence and Extent of Uncertainty

(1)

Prominence of Insurance

(1)

Problems of Information

(1)

Large Role of Nonprofit Firms

(1)

Restrictions on Competition

(1)

Role of Equity and Need

(1)

Government Subsidies and Public Provision

(1)

New Challenges to Health Economists -- Managed Care and Health Care Costs

(2)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(1)

Microeconomic Tools for Health Economics

(33)

Scarcity and the Production Possibilities Frontier

(3)

Practice with Supply and Demand

(4)

The Demand Curve and Demand Shifters

(1)

The Supply Curve and Supply Shifters

(1)

Equilibrium

(1)

Comparative Statics

(2)

Functions and Curves

(2)

Linear Functions

(1)

Demand Functions

(1)

Derived Demand

(1)

Consumer Theory: Ideas Behind the Demand Curve

(4)

Utility

(1)

Indifference Curves

(1)

Budget Constraints

(1)

Consumer Equilibrium

(1)

Individual and Market Demands

(1)

Elasticities

(2)

Production and Market Supply

(6)

The Production Function

(1)

Production Functions

(1)

Isocost Curves

(1)

Cost Minimization or Output Maximization

(1)

Marginal and Average Cost Curves

(1)

The Firm Supply Curve Under Perfect Competition

(3)

Monopoly and Other Market Structures

(1)

Welfare Losses

(1)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(2)

Appendix: Discounting

(1)

Statistical Tools for Health Economics

(20)

Hypothesis Testing

(1)

Difference of Means

(5)

The Variance of a Distribution

(1)

Standard Error of the Mean

(2)

Hypotheses and Inferences

(1)

Regression Analysis

(4)

Ordinary Least Squares (OLS) Regressions

(1)

A Demand Regression

(1)

Estimating Elasticities

(1)

Multiple Regression Analysis

(4)

Interpreting Regression Coefficients

(1)

Dummy Variables

(2)

The Identification Problem

(1)

Statistical Inference in the Sciences and Social Sciences

(1)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(3)

PART II: SUPPLY AND DEMAND

(114)

The Production of Health

(23)

The Production Function of Health

(3)

The Historical Role of Medicine and Health Care

(7)

The Rising Population and the Role of Medicine

(2)

What Caused the Mortality Rate Declines?

(1)

On the Role of Public Health and Nutrition

(3)

What Lessons Are Learned from the Medical Historian?

(1)

What Does Health Care Contribute in Total?

(1)

The Production Function of Health in the Modern Day

(8)

Preliminary Issues

(1)

The Contribution of Health Care to Population Health: The Modern Era

(2)

Morbidity Studies

(1)

How Does Health Care Affect Other Measures of Health?

(1)

On the Importance of Lifestyle and Environment

(1)

Cigarettes and Health

(1)

Maternal Behavior and Newborn Health

(1)

Environmental Pollution

(1)

Income and Health

(1)

The Role of Schooling

(2)

Two Different Theories About the Role of Schooling

(1)

Empirical Studies on the Role of Schooling in Health

(1)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(1)

The Production, Cost, and Technology of Health Care

(29)

Production and the Possibilities for Substitution

(4)

Substitution

(1)

What Degree of Substitution Is Possible?

(1)

Elasticity of Substitution

(1)

Estimates for Hospital Care

100

(1)

Costs in Theory and Practice

101

(9)

Deriving the Cost Function

101

(2)

Cost Minimization

103

(1)

Economies of Scale and Scope

104

(1)

Why Would Economies of Scale and Scope Be Important?

105

(1)

Empirical Cost Function Studies

106

(1)

Differences Among Hospital Cost Studies

107

(1)

Difficulties Faced by All Hospital Cost Studies

107

(2)

The Evidence on Hospital Economies of Scale and Scope

109

(1)

A Balance Between Structural and the Behavioral Studies

109

(1)

Does Long Run Versus Short Run Matter?

109

(1)

Summarizing These Cost Studies

110

(1)

Technical and Allocative Inefficiency

110

(5)

Technical Inefficiency

110

(1)

Allocative Inefficiency

111

(2)

Data Envelopment Analysis

113

(1)

The Stochastic Frontier Method

114

(1)

Stochastic Frontier Studies

114

(1)

Technological Changes and Costs

115

(3)

Technological Change: Cost Increasing or Decreasing?

115

(1)

Health Care Price Increases When Technological Change Occurs

116

(2)

The Diffusion of New Health Care Technologies

118

(4)

Who Adopts and Why?

118

(2)

Other Factors That May Affect Adoption Rates

120

(1)

Diffusion of Technology and Managed Care

121

(1)

Conclusions

122

(1)

Summary

122

(1)

Discussion Questions

122

(2)

Exercises

124

(1)

Demand for Health Capital

125

(16)

The Demand for Health

125

(2)

The Consumer as Health Producer

125

(1)

Time Spent Producing Health

126

(1)

Labor--Leisure Trade-Offs

127

(2)

Trading Leisure for Wages

127

(1)

Preferences Between Leisure and Income

128

(1)

The Investment/Consumption Aspects of Health

129

(2)

Production of Healthy Days

129

(1)

Production of Health and Home Goods

130

(1)

Investment over Time

131

(1)

The Demand for Health Capital

131

(2)

Marginal Efficiency of Investment (MEI) and Rate of Return

131

(1)

The Decreasing MEI

132

(1)

Changes in Equilibrium: Age, Wage, Education, and Uncertainty

133

(2)

Age

133

(1)

Wage Rate

134

(1)

Education

134

(1)

Uncertainty

135

(1)

Empirical Analyses Using Grossman's Model

135

(3)

Conclusions

138

(1)

Summary

138

(1)

Discussion Questions

139

(1)

Exercises

139

(2)

Demand and Supply of Health Insurance

141

(22)

What Is Insurance?

141

(1)

Insurance Versus Social Insurance

142

(1)

Insurance Terminology

142

(1)

Risk and Insurance

143

(3)

Expected Value

143

(1)

Marginal Utility of Wealth and Risk Aversion

144

(1)

Purchasing Insurance

145

(1)

The Demand for Insurance

146

(3)

How Much Insurance?

146

(1)

Changes in Premiums

147

(1)

Changes in Expected Loss

148

(1)

Changes in Wealth

149

(1)

The Supply of Insurance

149

(2)

Competition and Normal Profits

149

(2)

The Case of Moral Hazard

151

(4)

Demand for Care and Moral Hazard

151

(3)

Effects of Coinsurance and Deductibles

154

(1)

Health Insurance and the Efficient Allocation of Resources

155

(5)

The Impact of Coinsurance

155

(3)

The Demand for Insurance and the Price of Care

158

(1)

The Welfare Loss of Excess Health Insurance

159

(1)

Conclusions

160

(1)

Summary

160

(1)

Discussion Questions

161

(1)

Exercises

161

(2)

Consumer Choice and Demand

163

(24)

Applying the Standard Budget Constraint Model

163

(6)

The Consumer's Equilibrium

164

(2)

Demand Shifters

166

(2)

Health Status and Demand

168

(1)

Two Additional Demand Shifters -- Time and Coinsurance

169

(4)

The Role of Time

169

(2)

The Role of Coinsurance

171

(2)

Issues in Measuring Health Care Demand

173

(2)

Individual and Market Demand Functions

173

(1)

Measurement and Definitions

174

(1)

Differences in the Study Populations

174

(1)

Data Sources

174

(1)

Experimental and Nonexperimental Data

174

(1)

Empirical Measurements of Demand Elasticities

175

(6)

Price Elasticities

175

(2)

Individual Income Elasticities

177

(1)

Income Elasticities Across Countries

178

(1)

Insurance Elasticities

179

(2)

Impacts of Insurance on Aggregate Expenditures

181

(1)

Other Variables Affecting Demand

181

(2)

Ethnicity and Gender

181

(1)

Urban Versus Rural

182

(1)

Education

182

(1)

Age, Health Status, and Uncertainty

182

(1)

Conclusions

183

(1)

Summary

183

(1)

Discussion Questions

184

(1)

Exercises

185

(2)

PART III: INFORMATION AND INSURANCE MARKETS

187

(94)

Asymmetric Information and Agency

187

(15)

Overview of Information Issues

187

(1)

Asymmetric Information

188

(4)

On the Extent of Information Problems in the Health Sector

189

(1)

Asymmetric Information in the Used-Car Market: The Lemons Principle

190

(2)

Application of the Lemons Principle: Health Insurance

192

(3)

Inefficiencies of Adverse Selection

193

(1)

Experience Rating and Adverse Selection

194

(1)

The Agency Relationship

195

(1)

Agency and Health Care

195

(1)

Consumer Information, Prices, and Quality

196

(3)

Consumer Information and Prices

196

(1)

Consumer Information and Quality

197

(1)

Other Quality Indicators

198

(1)

Conclusions

199

(1)

Summary

200

(1)

Discussion Questions

200

(1)

Exercises

201

(1)

Imperfect Information: Supplier-Induced Demand and Small Area Variations

202

(23)

Supplier-Induced Demand (SID)

202

(3)

A Common Representation of SID

203

(2)

The Benchmark Models of SID

205

(5)

The Target Income Model

205

(3)

A Profit-Maximizing Model

208

(1)

A Synthesis of the Two Models

209

(1)

What Do the Data Tell Us About Supplier-Induced Demand?

210

(5)

Availability Effects

211

(1)

The Identification Problem: An Algebraic Example

211

(2)

Physician Fees, Fee Tests, and Fee Controls

213

(1)

Empirical Evidence of Income Effects

214

(1)

Information and SID

214

(1)

SID and Social Welfare

214

(1)

Small Area Variations (SAV)

215

(2)

Measuring the Variations: The CV and the SCV

216

(1)

Contributions to These Variations

217

(1)

The Physician Practice Style Hypothesis

217

(2)

Modeling Practice Style

217

(2)

Checking the Practice Style Hypothesis Against the Data

219

(3)

Education, Feedback, and Surveillance

219

(1)

Comparing Utilization Rates in Homogeneous Areas

219

(1)

Multiple Regression Approaches

219

(1)

SAV and the Social Cost of Inappropriate Utilization

220

(2)

Summary

222

(1)

Discussion Questions

223

(1)

Exercises

224

(1)

The Organization of Health Insurance Markets

225

(26)

Loading Costs and the Behavior of Insurance Firms

225

(1)

Impacts of Loading Costs

226

(2)

Insurance for Heart Attacks and Hangnails

227

(1)

Loading Costs and the Uninsured

227

(1)

Employer Provision of Health Insurance: Who Pays?

228

(6)

Spousal Coverage: Who Pays?

230

(1)

How the Tax System Influences Health Insurance Demand

231

(2)

Who Pays -- Empirical Tests

233

(1)

Other Impacts of Employer Provision of Health Insurance

233

(1)

Employer-Based Health Insurance and Labor Supply

234

(2)

Health Insurance and Retirement

234

(1)

Health Insurance and Mobility

234

(2)

The Market for Insurance

236

(3)

The Market for Private Insurance

236

(1)

Insurance Practices

237

(1)

The Past 15 Years

238

(1)

The Uninsured -- An Analytical Framework

239

(5)

The Working Uninsured

241

(2)

The Impacts of Mandated Coverage

243

(1)

Insurance, Technological Change, and Higher Costs

244

(2)

The Cost-Increasing Bias Hypothesis

244

(1)

The Goddeeris Model

245

(1)

Insurance, Technological Change, and Inflation: The Evidence

246

(1)

Does Induced Technological Change Make the Patient Better Off?

247

(1)

Conclusions

247

(1)

Summary

248

(1)

Discussion Questions

248

(1)

Exercises

249

(2)

Managed Care

251

(30)

What Is the Organizational Structure?

252

(2)

What Are the Economic Characteristics?

254

(1)

The Emergence of Managed Care Plans

255

(4)

Employer-Sponsored Managed Care

255

(2)

Medicaid Managed Care Plans

257

(1)

Managed Care Contracts with Physicians

257

(1)

Managed Care Contracts with Hospitals

258

(1)

Development and Growth of Managed Care -- Why Did It Take So Long?

259

(3)

The Economics of Price Discrimination

260

(2)

Barriers to Managed Care by Organized Medicine

262

(1)

Federal Policy and the Growth of Managed Care

262

(1)

Modeling Managed Care

262

(6)

Modeling Individual HMOs

263

(1)

How Much Care?

264

(1)

What Types of Care?

265

(1)

Framework for Prediction

265

(1)

Where Managed Care Differs from FFS -- Dumping, Creaming, and Skimping

266

(1)

Equilibrium and Adverse Selection in a Market with HMOs

266

(2)

How Does Managed Care Differ? -- Empirical Results

268

(4)

Methodological Issues -- Selection Bias and Quality of Care

268

(1)

Comparative Utilization and Costs

269

(1)

The Rand Study -- A Randomized Experiment

270

(1)

The Most Recent Evidence

271

(1)

Growth in Spending

272

(1)

Competitive Effects

273

(4)

Theoretical Issues

273

(1)

Managed Care Competition in Hospital Markets

274

(1)

Managed Care Competition in Insurance Markets

275

(1)

Managed Care and Technological Change

276

(1)

Conclusions

277

(1)

Summary

278

(1)

Discussion Questions

279

(1)

Exercises

280

(1)

PART IV: KEY PLAYERS IN THE HEALTH CARE SECTOR

281

(96)

Nonprofit Firms

281

(24)

An Introduction to Nonprofits

281

(1)

Why Nonprofits Exist and Why They Are Prevalent in Health Care

282

(7)

Nonprofits as Providers of Unmet Demands for Public Goods

282

(4)

Nonprofits as a Response to Contract Failure

286

(1)

Applications of Contract Failure to Nursing Home Care

286

(1)

The Role of Physicians in the Hospital Industry

287

(1)

Financial Matters and the Nonprofit

288

(1)

Summary of the Reasons for the Prevalence of Nonprofits

288

(1)

Models of Nonprofit Hospital Behavior

289

(6)

The Quality-Quantity Nonprofit Theory

289

(3)

The Hospital as a Physicians' Cooperative

292

(1)

A Comparison of the Quantity-Quality and the Physicians' Cooperative Theories

293

(2)

The Evidence: Do Nonprofit Hospitals Differ from For-Profit Hospitals?

295

(4)

The Harris Model

296

(1)

Summary of Models of Hospital Behavior

297

(1)

What Causes Conversion of Nonprofits into For-Profits?

298

(1)

The Relative Efficiency of Nonprofits Versus For-Profits

299

(3)

Property Rights Theory and Its Application to Nonprofits

299

(2)

Are Nonprofit Health Care Firms Less Efficient? -- Hospital and Nursing Home Studies

301

(1)

Conclusions

302

(1)

Summary

303

(1)

Discussion Questions

304

(1)

Exercises

304

(1)

Hospitals and Long-Term Care

305

(18)

Background and Overview of Hospitals

305

(4)

History

306

(1)

Organization

307

(1)

Regulation and Accreditation

308

(1)

Hospital Utilization and Costs

309

(5)

Competition and Costs

310

(1)

Hospital Cost Shifting

311

(2)

Closures, Mergers, and Restructuring in the Hospital Industry

313

(1)

Nursing Homes

314

(5)

Background and Costs

314

(1)

Quality of Care

315

(1)

Excess Demand

316

(2)

Financing Long-Term Care

318

(1)

Hospice and Home Health

319

(1)

Conclusions

320

(1)

Summary

321

(1)

Discussion Questions

322

(1)

Exercises

322

(1)

Health Care Labor Markets and Professional Training

323

(28)

The Demand for and Supply of Health Care Labor

323

(5)

Production Functions and Isoquants

324

(1)

Marginal Productivity of Labor

325

(1)

Factor Substitution and Labor Demand

326

(1)

The Supply of Labor

327

(1)

Factor Productivity and Substitution Among Factors

328

(2)

Measurement of Physician Productivity

329

(1)

The Efficient Utilization of Physician Assistants -- Substitution Among Inputs

329

(1)

Health Manpower Availability and the Meaning of Shortages

330

(6)

Availability of Physicians

330

(2)

Economic Definitions of Shortages of Health Professionals

332

(2)

The Role of Monopsony Power -- Shortages of Registered Nurses

334

(2)

Medical Education Issues and the Question of Control

336

(5)

Sources of Medical School Revenues

337

(1)

Capital Market Imperfections Justify Subsidies

337

(1)

Teaching Hospitals, Medical Schools, and Joint Production

337

(1)

Foreign Medical School Graduates (FMGs)

338

(1)

The Control of Medical Education

339

(1)

Control over Entry

340

(1)

Another View -- The Donor Preference Hypothesis

341

(1)

Licensure and Monopoly Rents

341

(4)

Public Interest or Self-Interest

342

(1)

Licensure and Quality

343

(2)

Physician Pricing, Transfer Pricing, and Price Discrimination

345

(3)

Managed Care and the Physician

347

(1)

Conclusions

348

(1)

Summary

348

(1)

Discussion Questions

349

(1)

Exercises

350

(1)

The Pharmaceutical Industry

351

(26)

Structure and Regulation

353

(4)

Competition

354

(1)

Barriers to Entry

355

(1)

Regulation

356

(1)

The Production of Health and Substitutability

357

(4)

Least-Cost Production

358

(1)

Insurance and Substitutability

359

(1)

Technological Change

360

(1)

Drug Pricing and Profits

361

(5)

Monopoly Pricing

362

(1)

Price Discrimination

363

(2)

Behavior Other Than Profit-Maximizing Behavior

365

(1)

Monopsony Pricing and Price Controls

365

(1)

Competition and Generic Entry

365

(1)

R&D and Innovation

366

(4)

Investment Decisions

367

(1)

R&D Spending

368

(1)

Firm Size and Innovation

368

(1)

Mergers and Acquisitions

369

(1)

Cost Containment

370

(2)

Copayments

370

(1)

Generic Substitutes

371

(1)

Drug Formularies

371

(1)

Conclusions

372

(1)

Summary

373

(1)

Discussion Questions

374

(1)

Exercises

374

(3)

PART V: SOCIAL INSURANCE

377

(140)

Equity, Efficiency, and Need

377

(24)

Efficiency and Competitive Markets

378

(5)

The Concept of Pareto Efficiency (Optimality)

378

(2)

The Idea of Trading Along the Budget Line

380

(1)

The Competitive Equilibrium

380

(1)

The First Fundamental Theorem of Welfare Economics

381

(1)

Redistribution of the Endowment

381

(1)

Price Discrimination

382

(1)

Okun's Leaky Bucket

383

(1)

Deviations from the Competitive Model in the Health Care Sector

383

(2)

The Assumptions Under Perfect Competition

383

(2)

Promoting Competition in the Health Care Sector

385

(1)

The Theorem of the Second Best

385

(1)

An Economic Efficiency Rationale for Social Programs in Health Care Based on Externalities

386

(2)

Need and Need-Based Distributions

388

(5)

Health Care Needs and the Social Welfare Function

389

(2)

Norman Daniels's Concept of Health Care Need

391

(2)

Horizontal Equity and Need

393

(2)

How to Compare Horizontal Equity Among Countries

394

(1)

The Results

394

(1)

Theories of Social Justice

395

(3)

Utilitarianism

395

(1)

Rawls and Justice as Fairness

396

(1)

Nozick and Entitlement Theory

397

(1)

Conclusions

398

(1)

Summary

398

(1)

Discussion Questions

399

(1)

Exercises

400

(1)

Government Intervention in Health Care Markets

401

(24)

Economic Rationale for Government Intervention

401

(6)

Monopoly Power

402

(1)

Public Goods

403

(2)

Externalities

405

(1)

Other Rationales for Government Intervention

406

(1)

Forms of Government Intervention

407

(3)

Commodity Taxes and Subsidies

407

(2)

Public Provision

409

(1)

Transfer Programs

409

(1)

Regulation

409

(1)

Government Involvement in Health Care Markets

410

(3)

Support of Hospitals

410

(1)

The Hill-Burton Act

410

(1)

The Veterans Administration and CHAMPUS

411

(1)

Food and Drug Administration

411

(1)

Mandated Health Insurance Benefits

411

(1)

Tax Policy

412

(1)

Public Health

412

(1)

Other Government Programs

412

(1)

Government Failure

413

(4)

Who Does the Regulator Represent?

413

(3)

Bureaucracy and Efficiency

416

(1)

Competitive Strategies

417

(5)

Increased Cost Sharing

418

(1)

Development of Alternative Delivery Systems

419

(1)

Medicare Managed Care

419

(1)

Medical Savings Accounts

420

(1)

Representation of the Competitive Approach

421

(1)

Conclusions

422

(1)

Summary

423

(1)

Discussion Questions

423

(1)

Exercises

424

(1)

Government Regulation -- Principal Regulatory Mechanisms

425

(29)

Do the Laws of Supply and Demand Apply?

425

(1)

Objectives of Regulation

426

(2)

Regulatory Policy

427

(1)

Regulatory Instruments in Health Care

427

(1)

Quality Controls

428

(1)

Regulation of the Hospital Sector

428

(4)

Rate Regulation, Utilization Review, and Certificate-of-Need

428

(1)

Empirical Findings on Regulation

429

(3)

Prospective Payment

432

(1)

Description of PPS

433

(1)

The Theory of Yardstick Competition and DRGs

433

(7)

On the Effects of Medicare's Prospective Payment System

437

(3)

Prospective Payment -- Recent Evidence

440

(1)

Regulation of Physician Payment

441

(2)

UCR Reimbursement, Assignment, and Alternative Payment Mechanisms

441

(1)

Relative Value Scales

442

(1)

Antitrust

443

(7)

Enforcement

444

(1)

Exemptions

444

(2)

Measuring Monopoly Power

446

(1)

Antitrust Procedures

447

(1)

The Elzinga-Hogarty Criterion

447

(3)

Conclusions

450

(1)

Summary

450

(1)

Discussion Questions

451

(1)

Exercises

452

(2)

Social Insurance

454

(27)

Social Insurance Policies and Social Programs

454

(2)

Program Features

455

(1)

Historical Roots of Social Insurance

456

(3)

European Beginnings

456

(1)

Early Experience in the United States

457

(1)

The Establishment of Medicare and Medicaid

458

(1)

Medicare and Medicaid in the United States

459

(6)

Medicare

459

(3)

Medicaid Overview

462

(3)

The Medicaid--Medicare Relationship

465

(1)

Children's Health Insurance Program

465

(1)

Public Insurance and Health

465

(2)

Take Up and Crowd Out

465

(2)

The Effects of Medicare and Medicaid

467

(10)

Costs and Inflation

467

(7)

Health Status

474

(1)

Medicare -- Recent Changes and Future Prospects

475

(2)

Criticisms of the American Health Care System

477

(1)

Conclusions

478

(1)

Summary

479

(1)

Discussion Questions

479

(1)

Exercises

480

(1)

Comparative Health Care Systems and Health System Reform

481

(36)

Contemporary Health Care Systems

481

(1)

A Typology of Contemporary Health Care Systems

482

(1)

National Health Programs: Three Examples

482

(11)

The United Kingdom -- The National Health Service

484

(3)

Germany

487

(4)

South Korea

491

(2)

The Canadian Health Care System

493

(6)

Background

493

(3)

Physician Fees and Quantity

496

(1)

Why Are Fees and Hospital Costs Lower in Canada?

496

(1)

Administrative Costs

496

(2)

A Comparison

498

(1)

Different Systems -- The Public's Evaluation

499

(2)

Differences in Health Care Spending Across Countries

501

(2)

A Simple Model of Health Expenditures Shares

501

(1)

Applying the Model

501

(1)

Cross-National Comparisons: Private Versus Public Financing Systems

502

(1)

National Health Insurance

503

(2)

Different Kinds of Possible National Health Insurance (NHI) Plans

503

(2)

The Costs of NHI

505

(1)

Ensuring Access to Care

505

(2)

Individual Versus Employer Mandates

505

(2)

Separation of Health Insurance from Employment

507

(3)

Single Payer Versus Multiple Insurers

508

(1)

Health Care Reform and International Competitiveness

509

(1)

Providing Care at Lower Cost

510

(2)

Medical Savings Accounts

510

(1)

Managed Care and Cost Containment

511

(1)

Conclusions

512

(1)

Summary

513

(1)

Discussion Questions

514

(1)

Exercises

515

(2)

PART VI: SPECIAL TOPICS

517

(44)

The Health Economics of Bads

517

(14)

The Health Economics of Bads: An Introduction

518

(2)

Models of Addiction

518

(2)

Rationales for Public Intervention

520

(1)

Other Interventions

521

(1)

Advertising Restrictions on Cigarettes and Alcohol

521

(4)

Theories of Advertising

522

(1)

The Possible Effects of Brand Switching

522

(2)

Increased Demand or Brand Switching?

524

(1)

Advertising and Alcohol Consumption

525

(1)

Excise Taxes and Consumption: Cigarettes and Alcohol

525

(3)

The Consumption-Reducing Effects of Excise Taxes in Theory

525

(1)

Excise Taxes and Cigarette Consumption in Practice

526

(2)

Excise Taxes and Alcohol Consumption

528

(1)

Conclusions

528

(1)

Summary

529

(1)

Discussion Questions

529

(1)

Exercises

530

(1)

Epidemiology and Economics: AIDS in Africa

531

(14)

Concepts from Epidemiology

531

(2)

Economic Epidemiology

533

(4)

Rational Epidemics

533

(1)

The Prevalence Elasticity of Demand for Prevention

534

(1)

The Economic Consequences of Epidemics

534

(2)

The Difficulty of Eradicating Diseases

536

(1)

Information

536

(1)

The Role of Government in Battling Epidemics

536

(1)

Case Study: AIDS in Africa

537

(6)

HIV/AIDS

537

(5)

Economic Theory and African Reality

542

(1)

Conclusions

543

(1)

Summary

543

(1)

Discussion Questions

544

(1)

Exercises

544

(1)

The Tools of Economic Evaluations

545

(16)

Cost-Benefit Analysis: Basic Principles

546

(8)

Measuring Costs

546

(2)

Marginal Analysis in CBA

548

(1)

Discounting

548

(2)

Risk Adjustment and CBA

550

(1)

Distributional Adjustments

550

(1)

Inflation

551

(1)

Valuing Human Life

551

(1)

Cost-Benefit Analyses of Disease-Screening Programs

552

(2)

Cost-Effectiveness Analysis

554

(2)

Advantages of CEA

554

(1)

An Application: The Sixth Stool GUAIAC Test

555

(1)

Cost--Utility Analysis, QALYs, and DALYs

556

(1)

Conclusions

557

(1)

Summary

558

(1)

Discussion Questions

559

(1)

Exercises

559

(2)

Glossary

561

(8)

References

569

(32)

Name Index

601

(6)

Subject Index

607

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The Economics of Health and Health Care

The Economics of Health and Health Care

9780131000674

0131000675

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Amazon no longer offers textbook rentals. We do!

The Economics of Health and Health Care

The Economics of Health and Health Care

9780131000674

0131000675

Summary

Table of Contents

Supplemental Materials

Excerpts

Write a Review

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