Uncertain Times: Kenneth Arrow and the Changing Economics of Health Care

Uncertain Times: Kenneth Arrow and the Changing Economics of Health Care

by Peter J. Hammer
     
 


This volume revisits the Nobel Prize-winning economist Kenneth Arrow’s classic 1963 essay “Uncertainty and the Welfare Economics of Medical Care” in light of the many changes in American health care since its publication. Arrow’s groundbreaking piece, reprinted in full here, argued that while medicine was subject to the same models of… See more details below

Overview


This volume revisits the Nobel Prize-winning economist Kenneth Arrow’s classic 1963 essay “Uncertainty and the Welfare Economics of Medical Care” in light of the many changes in American health care since its publication. Arrow’s groundbreaking piece, reprinted in full here, argued that while medicine was subject to the same models of competition and profit maximization as other industries, concepts of trust and morals also played key roles in understanding medicine as an economic institution and in balancing the asymmetrical relationship between medical providers and their patients. His conclusions about the medical profession’s failures to “insure against uncertainties” helped initiate the reevaluation of insurance as a public and private good.

Coming from diverse backgrounds—economics, law, political science, and the health care industry itself—the contributors use Arrow’s article to address a range of present-day health-policy questions. They examine everything from health insurance and technological innovation to the roles of charity, nonprofit institutions, and self-regulation in addressing medical needs. The collection concludes with a new essay by Arrow, in which he reflects on the health care markets of the new millennium. At a time when medical costs continue to rise, the ranks of the uninsured grow, and uncertainty reigns even among those with health insurance, this volume looks back at a seminal work of scholarship to provide critical guidance for the years ahead.

Contributors
Linda H. Aiken
Kenneth J. Arrow
Gloria J. Bazzoli
M. Gregg Bloche
Lawrence Casalino
Michael Chernew
Richard A. Cooper
Victor R. Fuchs
Annetine C. Gelijns
Sherry A. Glied
Deborah Haas-Wilson
Mark A. Hall
Peter J. Hammer
Clark C. Havighurst
Peter D. Jacobson
Richard Kronick
Michael L. Millenson
Jack Needleman
Richard R. Nelson
Mark V. Pauly
Mark A. Peterson
Uwe E. Reinhardt
James C. Robinson
William M. Sage
J. B. Silvers
Frank A. Sloan
Joshua Graff Zivin

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Product Details

ISBN-13:
9780822332480
Publisher:
Duke University Press Books
Publication date:
11/01/2003
Edition description:
New Edition
Pages:
400
Product dimensions:
6.24(w) x 9.20(h) x 0.89(d)

Table of Contents

Foreword
Preface
Kenneth Arrow and the Changing Economics of Health Care: "Why Arrow? Why Now?"
Uncertainty and the Welfare Economics of Medical Care (American Economic Review, 1963)1
General Equilibrium and Marketability in the Health Care Industry37
Arrow's Concept of the Health Care Consumer: A Forty-Year Retrospective49
Uncertainty and Technological Change in Medicine60
Human Inputs: The Health Care Workforce and Medical Markets71
Health Care as a (Big) Business: The Antitrust Response84
Health Insurance and Market Failure since Arrow103
Can Efficiency in Health Care Be Left to the Market?111
Valuing Charity134
Medical Service Risk and the Evolution of Provider Compensation Arrangement142
The Role of the Capital Markers in Restructuring Health Care156
Arrow and the Information Market Failure in Health Care: The Changing Content and Sources of Health Care Information169
The End of Asymmetric Information181
Managing Uncertainty: Intermediate Organizations as Triple Agents189
Moral Hazard vs. Real Hazard: Quality of Care Post-Arrow202
Arrow's Analysis of Social Institutions: Entering the Marketplace with Giving Hands?215
The Market for Medical Ethics230
The Role of Nonprofits in Health Care243
Arrow on Trust259
From Trust to Political Power: Interest Groups, Public Choice, and Health Care272
Regulating Health Care: From Self-Regulation to Self-Regulation?290
The Lawyerization of Medicine302
Reflections on the Reflections321
Contributors327
Index335

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