Health Economics / Edition 3

Health Economics / Edition 3

by Charles E. Phelps
     
 

ISBN-10: 032106898X

ISBN-13: 9780321068989

Pub. Date: 07/05/2002

Publisher: Addison Wesley

Health Economics combines current economic theory, recent research, and health policy issues into an accessible overview of the field. Recent research illustrates core economic concepts, which are then used to focus on key policy areas, such as the structure and effects of Medicare reform, insurance plan design, and emerging medical technologies.

Overview

Health Economics combines current economic theory, recent research, and health policy issues into an accessible overview of the field. Recent research illustrates core economic concepts, which are then used to focus on key policy areas, such as the structure and effects of Medicare reform, insurance plan design, and emerging medical technologies.

Product Details

ISBN-13:
9780321068989
Publisher:
Addison Wesley
Publication date:
07/05/2002
Series:
Addison-Wesley Series in Economics
Edition description:
3RD
Pages:
671
Product dimensions:
6.24(w) x 9.11(h) x 1.39(d)

Related Subjects

Table of Contents

Preface xiii

Chapter 1 Why Health Economics? 1

Important (If Not Unique) Aspects of Health Care Economics 2

How Markets Interrelate in Medical Care and Health Insurance 9

Afterthought 30

Summary 30

Related Chapters in Handbook of Health Economics 31

Problems 31

Chapter 2 Utility and Health 32

How to Think About Health and Health Care (or . . . How Health Economics?) 33

The Production of Health 36

Health Through the Lifecycle 38

A Model of Consumption and Health 40

Summary 53

Related Chapter in Handbook of Health Economics 54

Problems 54

Appendix to Chapter 2: A Formal Model of Utility Maximization 55

Chapter 3 The Transformation of Medical Care to Health 56

The Productivity of Medical Care 56

Confusion About the Production Function: A Policy Dilemma 73

Physician-Specific Variations (Medical Practice Styles) 80

Extensive and Intensive Margin Differences: Are They Similar? 85

Summary 86

Related Chapters in Handbook of Health Economics 87

Problems 87

Appendix to Chapter 3: Marginal, Average, and Total Productivity 88

Chapter 4 The Demand for Medical Care: Conceptual Framework 91

Indifference Curves for Health and Other Goods 92

From Indifference Curves to Demand Curves 98

How Demand Curves Depend on Illness Events 100

Demand Curves for Many Medical Services 101

The Demand Curve for a Society: Adding Up Individual Demands 102

Use of the Demand Curve to Measure Value of Care 103

How Insurance Affects a Demand Curve for Medical Care 105

Time Costs and Travel Costs 116

The Role of Quality in the Demand for Care 118

Revisited: The Price Index for Health Care 121

Summary 122

Related Chapters inHandbook of Health Economics 123

Problems 123

Appendix to Chapter 4: Demand Curves and Demand Elasticities 124

Chapter 5 Empirical Studies of Medical Care Demand and Applications 126

Studies of Demand Curves 127

Effects of Age and Gender on Demand 138

The Effects of Illness on Demand 139

Lifestyle and its Effects on Demand 139

The Demand for "Illness" 142

The Demand for Quality: Choice of Provider Specialization 145

Other Studies of Demand for Medical Care 146

Applications and Extensions of Demand Theory 150

Decision Theory: Deriving the "Right" Demand Curve for Medical Care 155

Cost-Effectiveness Ratios and Demand Curves 156

Why Variations in Medical Practice? 157

Summary 158

Related Chapters in Handbook of Health Economics 159

Problems 159

Appendix to Chapter 5: An Example of Medical Decision Theory 160

Chapter 6 The Physician and the Physician Firm 165

The "Firm"-Inputs, Output, and Cost 166

The Physician as Entrepreneur 167

The Physician-Firm and its Production Function 168

The Physician as Diagnostician 169

Nonphysician Primary-Care Providers 176

The Size of the Firm-Group Practice of Medicine 180

The Physician as Labor 185

The Aggregate Supply Curve: Entry and Exit 191

The Open Economy: U.S.- and Internationally Trained Physicians 191

Summary 193

Related Chapters in Handbook of Health Economics 193

Problems 193

Appendix to Chapter 6: Cost Passthrough 194

Chapter 7 Physicians in the Marketplace 197

Physician Location Decisions 198

Consumer Search and Market Equilibrium 204

Actual Search by Patients 216

Advertising and the Costs of Information 219

The Role of Licensure 221

Estimates of the Demand Curve Facing Physician-Firms 223

Induced Demand 225

The Role of Payment Schemes 233

Summary 235

Related Chapters in Handbook of Health Economics 236

Problems 236

Chapter 8 The Hospital as a Supplier of Medical Care 238

The Hospital Organization 239

Who Is the Residual Claimant? 244

Where Does the Utility Function Come From? A Political Theory Model 249

Hospital Costs 254

Long-Run Versus Short-Run Costs 258

The Hospital's "Cost Curve" 259

Another Complication: Outpatient Surgery 262

The Demand Curve Facing a Single Hospital 264

The Utility-Maximizing Hospital Manager Revisited 266

Summary 266

Related Chapters in Handbook of Health Economics 267

Problems 267

Chapter 9 Hospitals in the Marketplace 269

Hospitals and the Market for Medical Staff 270

Hospitals and Patients 272

A Model of Equilibrium Quality and Price 274

Insurance and Competition in the Hospital's Decision 278

Interaction of Doctors and Hospitals: "Goodies" for the Doctor 281

Interaction of Doctors and Hospitals: Patients for the Hospital 282

Competition-"Old Style" Versus "New Style" 283

Entry and Exit: The Pivotal Role of For-Profit Hospitals 286

The Hospital in Labor Markets 286

Nursing "Shortages" 292

Summary 294

Related Chapters in Handbook of Health Economics 295

Problems 296

Appendix to Chapter 9: The Hospital's Quality and Quantity Decision 296

Chapter 10 The Demand for Health Insurance 300

The Demand for Health Insurance 301

Reasons People Want Insurance 302

Choice of the Insurance Policy 308

Insurance Market Stability: The Question Of Self-Selection 318

Income Tax Subsidization of Health Insurance 326

Empirical Estimates of Demand for Insurance 333

The Overall Effect of the Tax Subsidy on the Health Sector 335

"Optimal" Insurance 335

Other Models of Demand for Insurance 336

Summary 337

Related Chapters in Handbook of Health Economics 338

Problems 338

Appendixes to Chapter 10

Appendix A A Detailed Calculation of Welfare Loss 341

Appendix B The Calculus of the Risk/Moral Hazard Trade-off 342

Appendix C The Statistics of an Insurance Pool 344

Chapter 11 Health Insurance Supply and Managed Care 345

The Supply of Insurance 345

Managed Care: A Response to the Incentives of Traditional Insurance 350

Why Managed Care? 352

Types of Interventions 357

Consumer Side 357

Which Interventions Work Best for Managed Care? 368

Long-Run Issues 370

Summary 374

Related Chapters in Handbook of Health Economics 374

Problems 374

Chapter 12 Government Provision of Health Insurance 376

The Medicare Program 378

Medicare HMOs (Medicare Advantage) 381

Operational Changes in Medicare 390

The Medicaid Program 411

Summary 416

Related Chapters in Handbook of Health Economics 418

Problems 418

Chapter 13 Medical Malpractice 420

Background of the Legal System in the United States 421

The Economic Logic of Negligence Law 427

Judicial Error, Defensive Medicine, and "Tough Guys" 430

Medical Malpractice Insurance 433

Evidence on Actual Deterrence 434

Malpractice Awards: "Lightning" or a "Broom Sweeping Clean"? 445

Tort Reform 446

Tort Reform Writ Large 450

HMO Liability: A New Domain for Malpractice Law 450

Summary 452

Related Chapter in Handbook of Health Economics 452

Problems 452

Chapter 14 Externalities in Health and Medical Care 453

Externalities, Property Rights, and the Control of Externalities 454

Externalities of Contagion 456

Solutions to the Externality Problems 464

International Issues-Expanding the Scope of the Externality 467

Externalities from Tobacco 469

Information as an Externality 472

Research as an Externality 475

Reasons for So Little Research on Medical Effectiveness 476

Transfusion-Induced AIDS and Hepatitis 478

Summary 480

Related Chapters in Handbook of Health Economics 480

Problems 480

Appendix to Chapter 14: Value of Life 481

Chapter 15 Managing the Market: Regulation and Technical Change in Health Care 484

A Taxonomy of Regulation 485

Licensure 486

"Certificate of Need" (CON) Laws 493

Drugs and Devices: The New Wave of Medical Care 507

Summary 526

Related Chapters in Handbook of Health Economics 527

Problems 527

Chapter 16 Universal Insurance Issues and International Comparisons of Health Care Systems 529

General Considerations for a National Health Policy 531

Review of Health Policy and Systems in Selected Countries 541

Snapshots of Four Countries 542

Aggregate International Comparisons 552

Increase in Costs and Health Outcomes 562

A Final Conundrum 566

Summary 566

Related Chapters in Handbook of Health Economics 567

Problems 567

Author's Postscript 569

Appendix: Introduction to Basic Economics Concepts 571

The Concept of Utility and Demand Curves 571

The Demand Curve by a Society: Adding Up Individual Demands 576

Using Demand Curves to Measure Value 577

The Problem of Supply of Goods 579

Market Equilibrium 585

Monopoly Pricing 588

Monopolistic Competition 591

Bibliography 595

Acknowledgments 623

Index 625

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