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The Economics of Health and Health Care

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

The Economics of Health and Health Care

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

ISBN 13:
9780132279420
ISBN 10:
0132279428
Edition: 5th
Format: Hardcover
Copyright: 01/01/2010
Publisher: Prentice Hall
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Summary

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.This book 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. Chapter topics include health care, health capital, information, health insurance markets, managed care, nonprofit firms, hospitals, physicians and labor, the pharmaceutical industry, government intervention and regulation, and epidemiology and economics.Useful as a reference work for health service researchers, government specialists, and physicians and others in the health care field.

Preface

xxiii

PART I: BASIC ECONOMICS TOOLS

(88)

Introduction

(19)

The Relevance of Health Economics

(7)

The Size and Scope of the Health Economy

(1)

Health Care's Share of GDP in the United States

(1)

Health Care Spending in Other Countries

(1)

Importance of the Health Economy in Personal Spending

(1)

Importance of the Health Economy to the Labor Force

(1)

Capital Investment in the Health Economy

(1)

Time---The Ultimate Resource

(1)

The Importance Attached to Economic Problems of Health Care Delivery

(1)

Inflation

(1)

Access

(1)

Quality

(1)

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?

(3)

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, Health Care Costs, and Health Insurance

(3)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(2)

Microeconomic Tools for Health Economics

(31)

Scarcity and the Production Possibilities Frontier

(3)

Practice with Supply and Demand

(3)

The Demand Curve and Demand Shifters

(1)

The Supply Curve and Supply Shifters

(1)

Equilibrium

(1)

Comparative Statics

(1)

Functions and Curves

(2)

Linear Functions

(1)

Demand Functions

(1)

Derived Demand

(1)

Consumer Theory: Ideas Behind the Demand Curve

(5)

Utility

(2)

Indifference Curves

(1)

Budget Constraints

(1)

Consumer Equilibrium

(1)

Individual and Market Demands

(1)

Elasticities

(1)

Production and Market Supply

(7)

The Production Function

(1)

Production Functions

(2)

Isocost Curves

(1)

Cost Minimization or Output Maximization

(1)

Marginal and Average Cost Curves

(1)

The Firm Supply Curve Under Perfect Competition

(2)

Monopoly and Other Market Structures

(1)

Welfare Losses

(2)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(1)

Statistical Tools for Health Economics

(17)

Hypothesis Testing

(1)

Difference of Means

(4)

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

(3)

Interpreting Regression Coefficients

(1)

Dummy Variables

(2)

Statistical Inference in the Sciences and Social Sciences

(1)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(2)

Economic Efficiency and Cost Benefit Analysis

(21)

Economic Efficiency

(3)

Cost-Benefit Analysis: Background

(1)

Cost-Benefit Analysis: Basic Principles

(8)

Measuring Costs

(1)

Risk Equity Versus Equality of Marginal Costs per Life Saved

(1)

Marginal Analysis in CBA

(1)

Discounting

(2)

Risk Adjustment and CBA

(1)

Distributional Adjustments

(1)

Inflation

(1)

Valuing Human Life

(2)

Cost-Benefit Analyses of Disease-Screening Programs

(1)

Cost-Effectiveness Analysis

(1)

Advantages of CEA

(1)

Cost-Utility Analysis, QALYs, and DALYs

(2)

An Ace Inhibitor Application of Cost Effectiveness Analysis

(1)

Is CUA Consistent with CBA?

(1)

Extra-Welfarism

(1)

The Ageism Critique of QALYs

(1)

Conclusions

(1)

Summary

(1)

Discussion Questions

(1)

Exercises

(2)

Appendix--Discounting

(1)

PART II: SUPPLY AND DEMAND

(110)

The Production of Health

(22)

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

(2)

What Lessons Are Learned from the Medical Historian?

(1)

What Does Health Care Contribute?

(1)

The Production Function of Health in the Modern Day

(7)

Preliminary Issues

(1)

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

(1)

Is Health Care Worth It?

100

(1)

Issues of Race and Gender

101

(1)

Prenatal Care Works

101

(1)

The World's Pharmacies

102

(1)

Morbidity Studies

102

(1)

How Does Health Care Affect Other Measures of Health?

103

(1)

On the Importance of Lifestyle and Environment

104

(1)

Cigarettes and Health

105

(1)

The Family as Producer of Health

105

(1)

Environmental Pollution

106

(1)

Income and Health

106

(1)

The Role of Schooling

106

(2)

Two Different Theories About the Role of Schooling

107

(1)

Empirical Studies on the Role of Schooling in Health

107

(1)

Conclusions

108

(1)

Summary

109

(1)

Discussion Questions

109

(1)

Exercises

110

(1)

The Production, Cost, and Technology of Health Care

111

(26)

Production and the Possibilities for Substitution

112

(4)

Substitution

112

(1)

What Degree of Substitution Is Possible?

113

(1)

Elasticity of Substitution

114

(1)

Estimates for Hospital Care

115

(1)

Costs in Theory and Practice

116

(8)

Deriving the Cost Function

116

(1)

Cost Minimization

116

(2)

Economies of Scale and Scope

118

(1)

Why Would Economies of Scale and Scope Be Important?

119

(2)

Empirical Cost-Function Studies

121

(1)

Differences Among Hospital Cost Studies

121

(1)

Difficulties Faced by All Hospital Cost Studies

122

(2)

Summarizing Cost Studies

124

(1)

Technical and Allocative Inefficiency

124

(4)

Technical Inefficiency

124

(1)

Allocative Inefficiency

125

(1)

Frontier Analysis

126

(2)

Technological Changes and Costs

128

(4)

Technological Change: Cost Increasing or Decreasing?

129

(1)

Health Care Price Increases When Technological Change Occurs

129

(3)

Diffusion of New Health Care Technologies

132

(2)

Who Adopts and Why?

132

(1)

Other Factors That May Affect Adoption Rates

133

(1)

Diffusion of Technology and Managed Care

133

(1)

Conclusions

134

(1)

Summary

134

(1)

Discussion Questions

135

(1)

Exercises

135

(2)

Demand for Health Capital

137

(16)

The Demand for Health

137

(2)

The Consumer as Health Producer

137

(2)

Time Spent Producing Health

139

(1)

Labor-Leisure Trade-Offs

139

(2)

Trading Leisure for Wages

139

(1)

Preferences Between Leisure and Income

140

(1)

The Investment/Consumption Aspects of Health

141

(2)

Production of Healthy Days

141

(1)

Production of Health and Home Goods

142

(1)

Investment over Time

143

(1)

The Cost of Capital

143

(1)

The Demand for Health Capital

144

(1)

Marginal Efficiency of Investment (MEI) and Rate of Return

144

(1)

The Decreasing MEI

144

(1)

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

145

(3)

Age

145

(1)

Wage Rate

146

(1)

Education

147

(1)

Uncertainty

148

(1)

Empirical Analyses Using Grossman's Model

148

(3)

Conclusions

151

(1)

Summary

151

(1)

Discussion Questions

151

(1)

Exercises

152

(1)

Demand and Supply of Health Insurance

153

(23)

What Is Insurance?

153

(2)

Insurance Versus Social Insurance

154

(1)

Insurance Terminology

154

(1)

Risk and Insurance

155

(3)

Expected Value

156

(1)

Marginal Utility of Wealth and Risk Aversion

156

(2)

Purchasing Insurance

158

(1)

The Demand for Insurance

158

(4)

How Much Insurance?

158

(1)

Changes in Premiums

159

(2)

Changes in Expected Loss

161

(1)

Changes in Wealth

161

(1)

The Supply of Insurance

162

(2)

Competition and Normal Profits

162

(2)

The Case of Moral Hazard

164

(4)

Demand for Care and Moral Hazard

165

(1)

Effects of Coinsurance and Deductibles

166

(2)

Health Insurance and the Efficient Allocation of Resources

168

(5)

The Impact of Coinsurance

168

(3)

The Demand for Insurance and the Price of Care

171

(1)

The Welfare Loss of Excess Health Insurance

172

(1)

Conclusions

173

(1)

Summary

173

(1)

Discussion Questions

174

(1)

Exercises

174

(2)

Consumer Choice and Demand

176

(23)

Applying the Standard Budget Constraint Model

176

(5)

The Consumer's Equilibrium

178

(1)

Demand Shifters

179

(2)

Health Status and Demand

181

(1)

Two Additional Demand Shifters---Time and Coinsurance

181

(4)

The Role of Time

181

(2)

The Role of Coinsurance

183

(2)

Issues in Measuring Health Care Demand

185

(3)

Individual and Market Demand Functions

186

(1)

Measurement and Definitions

186

(1)

Differences in the Study Populations

186

(1)

Data Sources

187

(1)

Experimental and Nonexperimental Data

187

(1)

Empirical Measurements of Demand Elasticities

188

(5)

Price Elasticities

188

(1)

Individual Income Elasticities

189

(1)

Income Elasticities Across Countries

190

(1)

Insurance Elasticities

191

(2)

Impacts of Insurance on Aggregate Expenditures

193

(1)

Other Variables Affecting Demand

193

(2)

Ethnicity and Gender

193

(1)

Urban Versus Rural

194

(1)

Education

194

(1)

Age, Health Status, and Uncertainty

195

(1)

Conclusions

195

(1)

Summary

196

(1)

Discussion Questions

197

(1)

Exercises

197

(2)

PART III: INFORMATION AND INSURANCE MARKETS

199

(95)

Asymmetric Information and Agency

199

(16)

Overview of Information Issues

200

(1)

Asymmetric Information

200

(4)

On the Extent of Information Problems in the Health Sector

201

(1)

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

202

(2)

Application of the Lemons Principle: Health Insurance

204

(2)

Inefficiencies of Adverse Selection

205

(1)

Experience Rating and Adverse Selection

206

(1)

The Agency Relationship

206

(2)

Agency and Health Care

207

(1)

Consumer Information, Prices, and Quality

208

(3)

Consumer Information and Prices

208

(1)

Consumer Information and Quality

209

(1)

Other Quality Indicators

210

(1)

Conclusions

211

(1)

Summary

212

(1)

Discussion Questions

213

(1)

Exercises

213

(2)

The Organization of Health Insurance Markets

215

(26)

Loading Costs and the Behavior of Insurance Firms

215

(3)

Impacts of Loading Costs

216

(1)

Insurance for Heart Attacks and Hangnails

217

(1)

Loading Costs and the Uninsured

217

(1)

Employer Provision of Health Insurance: Who Pays?

218

(6)

Spousal Coverage: Who Pays?

220

(1)

How the Tax System Influences Health Insurance Demand

221

(1)

Who Pays---Empirical Tests

222

(1)

Other Impacts of Employer Provision of Health Insurance

223

(1)

Employer-Based Health Insurance and Labor Supply

224

(2)

Health Insurance and Retirement

224

(1)

Health Insurance and Mobility

224

(2)

The Market for Insurance

226

(3)

The Market for Private Insurance

226

(1)

Insurance Practices

226

(2)

The Past 20 Years

228

(1)

The Uninsured: An Analytical Framework

229

(5)

The Working Uninsured

230

(3)

The Impacts of Mandated Coverage

233

(1)

Insurance, Technological Change, and Higher Costs

234

(2)

The Cost-Increasing Bias Hypothesis

234

(1)

The Goddeeris Model

235

(1)

Evidence on Insurance, Technological Change, and Inflation

236

(1)

Does Induced Technological Change Make the Patient Better Off?

237

(1)

Conclusions

237

(1)

Summary

238

(1)

Discussion Questions

238

(1)

Exercises

239

(2)

Managed Care

241

(29)

What Is the Organizational Structure?

243

(1)

What Are the Economic Characteristics?

243

(2)

The Emergence of Managed Care Plans

245

(4)

Employer-Sponsored Managed Care

245

(1)

Medicaid Managed Care Plans

246

(1)

Managed Care Contracts with Physicians

247

(1)

Managed Care Contracts with Hospitals

248

(1)

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

249

(2)

Federal Policy and the Growth of Managed Care

249

(1)

The Economics of Managed Care

250

(1)

Modeling Managed Care

251

(5)

Modeling Individual HMOs

251

(1)

How Much Care?

252

(1)

What Types of Care?

253

(1)

Framework for Prediction

253

(1)

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

254

(1)

Equilibrium and Adverse Selection in a Market with HMOs

254

(2)

How Does Managed Care Differ?---Empirical Results

256

(3)

Methodological Issues---Selection Bias and Quality of Care

257

(1)

Comparative Utilization and Costs

257

(1)

The Rand Study: A Randomized Experiment

258

(1)

The Most Recent Evidence

259

(1)

Growth in Spending

259

(3)

Competitive Effects

262

(4)

Theoretical Issues

262

(1)

Managed Care Competition in Hospital Markets

263

(1)

Managed Care Competition in Insurance Markets

264

(1)

Managed Care and Technological Change

265

(1)

Conclusions

266

(1)

Summary

267

(1)

Discussion Questions

268

(1)

Exercises

268

(2)

Nonprofit Firms

270

(24)

An Introduction to Nonprofits

270

(1)

Why Nonprofits Exist and Why They Are Prevalent in Health Care

271

(7)

Nonprofits as Providers of Unmet Demands for Public Goods

271

(1)

The Public Good-Private Good Aspect of Donations

272

(2)

Relevance to Health Care Markets

274

(1)

Nonprofits as a Response to Contract Failure

275

(1)

Applications of Contract Failure to Nursing Home Care

275

(1)

Relevance of Contract Failure to Hospitals and Other Firms

276

(1)

The Role of Physicians in the Hospital Industry

276

(1)

Financial Matters and the Nonprofit

277

(1)

Summary of the Reasons for the Prevalence of Nonprofits

277

(1)

Models of Nonprofit Hospital Behavior

278

(10)

The Quality-Quantity Nonprofit Theory

278

(2)

The Hospital as a Physicians' Cooperative

280

(1)

Maximizing Net Revenue per Physician

281

(1)

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

282

(2)

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

284

(1)

The Harris Model

285

(1)

Summary of Models of Hospital Behavior

286

(1)

What Causes Conversion of Nonprofits into For-Profits?

287

(1)

The Relative Efficiency of Nonprofits Versus For-Profits

288

(3)

Property Rights Theory and Its Application to Nonprofits

288

(2)

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

290

(1)

Conclusions

291

(1)

Summary

292

(1)

Discussion Questions

293

(1)

Exercises

293

(1)

PART IV: KEY PLAYERS IN THE HEALTH CARE SECTOR

294

(89)

Hospitals and Long-Term Care

294

(19)

Background and Overview of Hospitals

294

(4)

History

295

(1)

Organization

296

(1)

Regulation and Accreditation

297

(1)

Hospital Utilization and Costs

298

(5)

Competition and Costs

299

(3)

Closures, Mergers, and Restructuring in the Hospital Industry

302

(1)

Nursing Homes

303

(6)

Background and Costs

303

(2)

Quality of Care

305

(1)

Excess Demand

306

(1)

Financing Long-Term Care

307

(2)

Hospice, Home Health, and Informal Care

309

(1)

Conclusions

310

(1)

Summary

310

(1)

Discussion Questions

311

(1)

Exercises

311

(2)

The Physician's Practice

313

(18)

A Benchmark Model of the Physician's Practice

313

(3)

Supplier-Induced Demand (SID)

316

(5)

The Supply and Demand Model

316

(1)

The Target Income Hypothesis

317

(1)

The Benchmark Model as a Synthesis

318

(1)

The Parallel Between Inducement and Advertising

319

(1)

What Do the Data Say About Supplier-Induced Demand?

320

(1)

Physician Fees, Fee Tests, and Fee Controls

320

(1)

Small Area Variations (SAV)

321

(5)

Contributions to These Variations

322

(1)

The Physician Practice Style Hypothesis

323

(1)

Checking the Practice Style Hypothesis Against the Data

323

(1)

SAV and the Social Cost of Inappropriate Utilization

324

(1)

SAV Analysis in Other Applications

325

(1)

Other Physician Issues and Policy Puzzles

326

(2)

Physician Pricing and Price Discrimination

326

(1)

Paying for Outcomes

327

(1)

Conclusions

328

(1)

Summary

328

(1)

Discussion Questions

329

(1)

Exercises

330

(1)

Health Care Labor Markets and Professional Training

331

(27)

The Demand for and Supply of Health Care Labor

331

(5)

Production Functions and Isoquants

332

(1)

Marginal Productivity of Labor

333

(1)

Factor Substitution and Labor Demand

334

(1)

The Supply of Labor

334

(2)

Factor Productivity and Substitution Among Factors

336

(2)

Measurement of Physician Productivity

336

(1)

The Efficient Utilization of Physician Assistants: Substitution Among Inputs

337

(1)

Health Manpower Availability and the Meaning of Shortages

338

(6)

Availability of Physicians

338

(2)

Economic Definitions of Shortages of Health Professionals

340

(2)

The Role of Monopsony Power: Shortages of Registered Nurses

342

(2)

Medical Education Issues and the Question of Control

344

(5)

Sources of Medical School Revenues

345

(1)

Capital Market Imperfections Justify Subsidies

345

(1)

Teaching Hospitals, Medical Schools, and Joint Production

345

(1)

Foreign Medical School Graduates (FMGs)

346

(1)

The Control of Medical Education

347

(1)

Control over Entry

348

(1)

Another View: The Donor Preference Hypothesis

348

(1)

Licensure and Monopoly Rents

349

(4)

Public Interest or Self-Interest

350

(1)

Licensure and Quality

351

(2)

Other Physician Labor Issues

353

(1)

Specialization

353

(1)

Physician Income by Gender

353

(1)

Conclusions

354

(1)

Summary

355

(1)

Discussion Questions

355

(1)

Exercises

356

(2)

The Pharmaceutical Industry

358

(25)

Structure and Regulation

360

(3)

Competition

360

(1)

Barriers to Entry

361

(1)

Regulation

362

(1)

The Production of Health and Substitutability

363

(5)

Least-Cost Production

365

(1)

Insurance and Substitutability

366

(1)

Technological Change

366

(2)

Drug Pricing and Profits

368

(4)

Monopoly Pricing

369

(1)

Price Discrimination

370

(1)

Behavior Other Than Profit-Maximizing Behavior

371

(1)

Monopsony Pricing and Price Controls

371

(1)

Competition and Generic Entry

372

(1)

R&D and Innovation

372

(3)

Investment Decisions

373

(1)

R&D Spending

374

(1)

Firm Size and Innovation

375

(1)

Cost Containment

375

(4)

Copayments

377

(1)

Generic Substitutes

378

(1)

Drug Formularies

378

(1)

Conclusions

379

(1)

Summary

380

(1)

Discussion Questions

380

(1)

Exercises

381

(2)

PART V: SOCIAL INSURANCE

383

(142)

Equity, Efficiency, and Need

383

(24)

Efficiency and Competitive Markets

384

(5)

The Concept of Pareto Efficiency (Optimality)

384

(2)

Trading Along the Budget Line

386

(1)

The Competitive Equilibrium

386

(1)

The First Fundamental Theorem of Welfare Economics

387

(1)

Redistribution of the Endowment

387

(1)

Price Discrimination

388

(1)

Trade-offs Between Equity and Efficiency

389

(1)

Deviations from the Competitive Model in the Health Care Sector

389

(2)

The Assumptions Under Perfect Competition

389

(2)

Promoting Competition in the Health Care Sector

391

(1)

The Theorem of the Second Best

391

(1)

An Economic Efficiency Rationale for Health Care Programs Based on Externalities

392

(2)

Need and Need-Based Distributions

394

(5)

Health Care Needs and the Social Welfare Function

395

(2)

Norman Daniels's Concept of Health Care Need

397

(2)

Economic Criticisms of Need-Based Distributions

399

(1)

Horizontal Equity and Need

399

(2)

Comparing Horizontal Equity Among Countries

400

(1)

The Results

400

(1)

Theories of Social Justice

401

(3)

Utilitarianism

401

(1)

Rawls and Justice as Fairness

402

(1)

Liberalism, Classical and Modern

403

(1)

Conclusions

404

(1)

Summary

405

(1)

Discussion Questions

405

(1)

Exercises

406

(1)

Government Intervention in Health Care Markets

407

(23)

Economic Rationale for Government Intervention

407

(5)

Monopoly Power

408

(1)

Public Goods

409

(2)

Externalities

411

(1)

Other Rationales for Government Intervention

412

(1)

Forms of Government Intervention

412

(3)

Commodity Taxes and Subsidies

412

(2)

Public Provision

414

(1)

Transfer Programs

414

(1)

Regulation

415

(1)

Government Involvement in Health Care Markets

415

(5)

Support of Hospitals

416

(1)

The Hill-Burton Act

416

(1)

The Veterans Administration and CHAMPUS

416

(1)

Food and Drug Administration

417

(1)

Mandated Health Insurance Benefits

417

(1)

Tax Policy

417

(1)

Public Health

418

(1)

Other Government Programs

418

(2)

Government Failure

420

(3)

Who Does the Regulator Represent?

420

(2)

Bureaucracy and Efficiency

422

(1)

Competitive Strategies

423

(5)

Increased Cost Sharing

424

(1)

Development of Alternative Delivery Systems

424

(1)

Consumer-Driven Health Plans and Health Savings Accounts

425

(2)

Representation of the Competitive Approach

427

(1)

Conclusions

428

(1)

Summary

428

(1)

Discussion Questions

429

(1)

Exercises

429

(1)

Government Regulation: Principal Regulatory Mechanisms

430

(31)

Do the Laws of Supply and Demand Apply?

430

(1)

Objectives of Regulation

431

(2)

Regulatory Policy

432

(1)

Regulatory Instruments in Health Care

432

(1)

Regulation of the Hospital Sector

433

(5)

Rate Regulation, Utilization Review, and Certificate of Need

433

(1)

Empirical Findings on Regulation

434

(4)

Prospective Payment

438

(2)

Description of PPS

438

(2)

The Theory of Yardstick Competition and DRGs

440

(8)

On the Effects of Medicare's Prospective Payment System

444

(4)

Prospective Payment: Recent Evidence

448

(1)

Regulation of Physician Payment

449

(2)

UCR Reimbursement, Assignment, and Alternative Payment Mechanisms

449

(1)

Relative Value Scales

449

(2)

Antitrust

451

(6)

Enforcement

451

(1)

Exemptions

451

(2)

Measuring Monopoly Power

453

(1)

Antitrust Procedures

454

(2)

The Elzinga-Hogarty (EH) Criterion

456

(1)

Conclusions

457

(1)

Summary

458

(1)

Discussion Questions

458

(1)

Exercises

459

(2)

Social Insurance

461

(30)

Social Insurance Policies and Social Programs

461

(2)

Program Features

462

(1)

Historical Roots of Social Insurance

463

(2)

European Beginnings

463

(1)

Early Experience in the United States

464

(1)

The Establishment of Medicare and Medicaid

465

(1)

Medicare and Medicaid in the United States

465

(9)

Medicare

466

(5)

Medicaid Overview

471

(1)

Medicaid Eligibility

471

(3)

The Medicaid-Medicare Relationship

474

(1)

State Children's Health Insurance Program

474

(1)

Public Insurance and Health

474

(3)

The Effects of Medicare and Medicaid

477

(9)

Costs and Inflation

477

(5)

Health Status

482

(1)

Medicare: Recent Changes and Future Prospects

483

(3)

Criticisms of the U.S. Health Care System

486

(1)

Conclusions

487

(1)

Summary

488

(1)

Discussion Questions

488

(1)

Exercises

489

(2)

Comparative Health Care Systems and Health System Reform

491

(34)

Contemporary Health Care Systems

491

(1)

A Typology of Contemporary Health Care Systems

491

(1)

National Health Programs: United Kingdom and Germany

492

(10)

The United Kingdom: The National Health Service

494

(4)

Germany

498

(4)

The Canadian Health Care System

502

(6)

Background

503

(2)

Physician Fees and Quantity

505

(1)

Why Are Fees and Hospital Costs Lower in Canada?

505

(1)

Administrative Costs

506

(1)

A Comparison

506

(2)

Different Systems: The Public's Evaluation

508

(2)

Differences in Health Care Spending Across Countries

510

(4)

A Simple Model of Health Expenditures Shares

511

(3)

National Health Insurance

514

(2)

Different Kinds of National Health Insurance (NHI) Plans

514

(1)

The Costs of NIII

515

(1)

Ensuring Access to Care

516

(5)

Employer Versus Individual Mandates

516

(2)

Separation of Health Insurance from Employment

518

(1)

Single Payer Versus Multiple Insurers

518

(2)

Health Care Reform and International Competitiveness

520

(1)

Conclusions

521

(1)

Summary

521

(1)

Discussion Questions

522

(1)

Exercises

523

(2)

PART VI: SPECIAL TOPICS

525

(34)

The Health Economics of Bads

525

(16)

An Introduction to Bads

526

(1)

Models of Addiction

527

(3)

Imperfectly Rational Addiction Models

527

(1)

Myopic Addiction Models

527

(1)

Rational Addiction

528

(2)

Rationales for Public Intervention

530

(1)

Other Interventions

531

(1)

Advertising Restrictions on Cigarettes and Alcohol

531

(4)

Theories of Advertising

532

(1)

The Possible Effects of Brand Switching

533

(1)

Increased Demand or Brand Switching?

534

(1)

Advertising and Alcohol Consumption

535

(1)

Excise Taxes and Consumption of Cigarettes and Alcohol

535

(4)

The Consumption-Reducing Effects of Excise Taxes in Theory

535

(1)

Excise Taxes and Cigarette Consumption in Practice

536

(2)

Excise Taxes and Alcohol Consumption

538

(1)

Conclusions

539

(1)

Summary

539

(1)

Discussion Questions

539

(1)

Exercises

540

(1)

Epidemiology and Economics: HIV/AIDS in Africa

541

(18)

Concepts from Epidemiology

541

(2)

Economic Epidemiology

543

(5)

Rational Epidemics

543

(1)

The Prevalence Elasticity of Demand for Prevention

544

(1)

The Economic Consequences of Epidemics

545

(1)

The Difficulty of Eradicating Diseases

546

(1)

Information

547

(1)

The Role of Government in Battling Epidemics

547

(1)

Case Study: HIV/AIDS in Africa

548

(7)

HIV/AIDS

548

(2)

Costs of AIDS

550

(1)

Fighting AIDS

551

(4)

Economic Theory and African Reality

555

(1)

Conclusions

555

(1)

Summary

556

(1)

Discussion Questions

556

(1)

Exercises

556

(3)

Glossary

559

(7)

References

566

(28)

Name Index

594

(4)

Subject Index

598

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The Economics of Health and Health Care

The Economics of Health and Health Care

9780132279420

0132279428

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Table of Contents

Supplemental Materials

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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

9780132279420

0132279428

Summary

Table of Contents

Supplemental Materials

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