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health economics
Questions and Answers of
Health Economics
Indicate whether each statement is true or false, and justify your answer.The price of curing Hodgkin’s disease has risen substantially between 1950 and 2000.
Indicate whether each statement is true or false, and justify your answer.The fact that total expenditures on heart attack care increased between 1984 and 1991 is good evidence that the price of
Indicate whether each statement is true or false, and justify your answer.The Dartmouth Atlas research project finds that health care spending varied widely between different American cities in the
Indicate whether each statement is true or false, and justify your answer.The Dartmouth Atlas results are proof that health is easier and/or cheaper to produce in some American cities than others.
Indicate whether each statement is true or false, and justify your answer.High health care expenditures in certain cities and states have been interpreted as evidence for supply-sensitive care and
In a journal article, Philipson and Jena (2006) study HIV survival and expenditures. Figure 13.9 shows trends in HIV survival and HIV expenditures in the US.a. Figure 13.9 (a) shows that HIV
Indicate whether each statement is true or false, and justify your answer.If Medicare patients in Boston are paying more per capita for a hip replacement than Medicare patients in Boise for the same
Suppose that your utility function over health care (h) and other goods (c) is given by U(h,c) and that you have a fixed income of $100. (Assume that the indifference curves of your utility function
Indicate whether each statement is true or false, and justify your answer.One reason why total health expenditures are rising is because of an aging population.
Indicate whether each statement is true or false, and justify your answer.A dominated treatment is one that is less cost-effective than another treatment (even though it may produce better medical
Indicate whether each statement is true or false, and justify your answer.Both ICERs and ACERs compare two drugs on the basis of both cost and medical efficacy.
Indicate whether each statement is true or false, and justify your answer.If a medical screening technique is perfect at detecting a disease before it develops and is able to prevent the disease from
Indicate whether each statement is true or false, and justify your answer.An ICER value indicates which of two treatment options is better.
Indicate whether each statement is true or false, and justify your answer.The cost-effectiveness frontier (CEF) shows the subset of treatment strategies which are not dominated by any other treatment.
Indicate whether each statement is true or false, and justify your answer.The results of any CEA analysis depend on the perspective taken, but analyses from the perspectives of the patient and a
Indicate whether each statement is true or false, and justify your answer.There are several survey methods that health services researchers use to measure quality of life under different diseases.
Indicate whether each statement is true or false, and justify your answer.Medical experts are ideal candidates for providing estimates of the quality weights associated with various health states.
Indicate whether each statement is true or false, and justify your answer.Cost–benefit analysis (CBA) allows us to pick an optimal treatment from the list of potentially cost-effective treatments.
Indicate whether each statement is true or false, and justify your answer.The value of statistical life (VSL) is a measure of how much money someone would be willing to accept in exchange for dying.
Indicate whether each statement is true or false, and justify your answer.Studies of labor market choices and product purchase decisions infer VSL from tradeoffs between money and risk.
Indicate whether each statement is true or false, and justify your answer.Empirically, VSL estimates vary widely by country, income, age, and gender.
Indicate whether each statement is true or false, and justify your answer.Cost–benefit analysis is used to determine which medicines and treatments US Medicare will cover.
Suppose Jay has been experiencing back pain, and has four options for treatment (Table 14.6).a. Plot these four treatments on cost–pain reduction axes. Create a cost-effectiveness frontier by
Traders from the faraway nation of Chplandia have brought infected goods to market in the capital of Pcoria. As a result, a new infectious disease called chpitis is spreading through the Pcorian
Indicate whether each statement is true or false, and justify your answer.If members of a society have transitive preferences, then that society as a whole must also have transitive preferences.
Indicate whether each statement is true or false, and justify your answer.The goal of health policy is to maximize health, wealth, and equity.
Indicate whether each statement is true or false, and justify your answer.Health systems focused on promoting equity typically have purely private insurance markets.
Indicate whether each statement is true or false, and justify your answer.Insurance mandates do little to combat the problem of adverse selection.
Indicate whether each statement is true or false, and justify your answer.Cost-sharing is used to combat moral hazard at the expense of equity.
Indicate whether each statement is true or false, and justify your answer.Queues can help to equitably reduce moral hazard.
Indicate whether each statement is true or false, and justify your answer.Prospective payment systems align the interests of doctors and their patients.
Indicate whether each statement is true or false, and justify your answer.There is no such thing as “too much competition” in the private hospital market.
Indicate whether each statement is true or false, and justify your answer.A country operating below its own health production frontier is said to be productively inefficient.
Indicate whether each statement is true or false, and justify your answer.If a country is productively efficient and hence on its own health production frontier, it is spending the optimal amount of
Indicate whether each statement is true or false, and justify your answer.If health disparities exist within a country, then it cannot be operating on its health production frontier.
Indicate whether each statement is true or false, and justify your answer.There are no out-of-pocket costs (i.e. coinsurance, copayments, premiums, deductibles, etc.) for patients being treated by
Indicate whether each statement is true or false, and justify your answer.Beveridge countries typically feature single-payer insurance.
Indicate whether each statement is true or false, and justify your answer.A difference between Canada and most Beveridge countries is that hospitals and doctors in Canada are private, nonprofit
Indicate whether each statement is true or false, and justify your answer.Queuing care is never optimal because it increases wait times and provides no concomitant benefit.
Indicate whether each statement is true or false, and justify your answer.Price rationing helps remove patients who do not really need treatment from queue lines.
Indicate whether each statement is true or false, and justify your answer.In a typical Beveridge system, patients are able to enter queues to see specialists automatically.
Indicate whether each statement is true or false, and justify your answer.NICE conducts health technology assessments for the UK, but the NHS is not authorized to use their analyses to make decisions
Indicate whether each statement is true or false, and justify your answer.Patients in the UK have historically been unable to choose their health care provider, but recent reforms have created
Indicate whether each statement is true or false, and justify your answer.The NHS internal market require regional purchasers to negotiate contracts with hospitals for efficient patient care.
Indicate whether each statement is true or false, and justify your answer.One hundred percent of health expenditures in Beveridge countries is publicly financed.
Indicate whether each statement is true or false, and justify your answer.There is great emphasis in the Beveridge model on equitable care for all; therefore it is illegal for private insurance to be
In a typical competitive market (not in health care), how does competition work to promote the efficiency of organizations operating in the market? What are the consequences for an organization (and
The existence of a parallel private health care system within a broader public Beveridge system provides an opportunity for patients who are unhappy with the service they receive in the public
Leaving equity issues aside, can the existence of a parallel private market for health care directly harm people who can only afford to get their care from the public system?
In the US, public insurers such as Medicare are forbidden by law from applying formal health technology assessments – and in particular, cost-effectiveness analyses –in deciding whether to cover
Indicate whether each statement is true or false, and justify your answer.Nearly half of expenditures on health care in the US are government financed.
Indicate whether each statement is true or false, and justify your answer.The take-up rate of health insurance among people with good jobs (that is full-time jobs that have lasted longer than a year)
Indicate whether each statement is true or false, and justify your answer.In employer-sponsored health insurance in the US, employers pay the largest share of the costs of health insurance.
Indicate whether each statement is true or false, and justify your answer.Medicare Part D, which was implemented in 2006, is the federal insurance program for the elderly in the US that provides for
Indicate whether each statement is true or false, and justify your answer.In the US Medicare program, by statute, the government is not permitted to take cost-effectiveness criteria into account when
Indicate whether each statement is true or false, and justify your answer.The primary source of funding for the Medicare program is from premiums assessed on the elderly population, which is the
Indicate whether each statement is true or false, and justify your answer.The imposition of federally mandated maternity benefits had no effect on the mean wages of female workers.
Indicate whether each statement is true or false, and justify your answer.A primary cause of increasing uninsurance in the US over the past decade is that more employers are deciding to stop
Indicate whether each statement is true or false, and justify your answer.Barriers to care erected by managed care organizations, such as requiring patients to visit gatekeeper physicians prior to
Indicate whether each statement is true or false, and justify your answer.Scholars who study managed care organizations tend to pick managed care plans over more traditional health insurance plans.
Indicate whether each statement is true or false, and justify your answer.Medicaid creates a work disincentive effect even for people currently not working at all.
Indicate whether each statement is true or false, and justify your answer.Suppose that a state grants Medicaid benefits to a worker only if his income is between $5,000 and $10,000 a year. This will
Indicate whether each statement is true or false, and justify your answer.The primary sources of funding for Medicaid are payroll taxes (paid by workers), and premiums, deductibles, and copayments
Indicate whether each statement is true or false, and justify your answer.In 2010, there were nearly 40 million people in the US who went without health insurance for the entire year.
Indicate whether each statement is true or false, and justify your answer.In the 2010 American health reform law, one primary mechanism for financing the expansion of health insurance to the
Indicate whether each statement is true or false, and justify your answer.After the American health reform plan is fully implemented in 2014, there will be no more uninsured people in the US.
In this problem, based on a simplified version of the model in Bhattacharya and Sood (2006), we will explore how linking employment and health insurance provision can (partially) solve the adverse
In the US, where most private health insurance coverage is provided by employers, changing employers nearly always means changing health insurance providers. Review the definition of job lock from
Employer sponsored insurance. Consider a Rothschild–Stiglitz model of adverse selection in which there are two types of people (robust and frail) who work for a single employer, BHT Inc. Both types
Indicate whether the statement is true or false, and justify your answer. Unlike with most types of goods, deriving a demand curve for health care is quite simple because people rarely skimp on
Indicate whether the statement is true or false, and justify your answer. The RAND study was especially useful for measuring price elasticities because it randomly assigned insurance plans to
Indicate whether the statement is true or false, and justify your answer. The Oregon Medicaid Experiment is not truly “randomized” because lottery winners did not all end up with insurance, and
Indicate whether the statement is true or false, and justify your answer. The RAND HIE found that people assigned to the free health plan had the same rate of hospitalization as people assigned to
Indicate whether the statement is true or false, and justify your answer.In the RAND HIE, the arc elasticity of demand for inpatient care was larger (in absolute value) than the arc elasticity of
Indicate whether the statement is true or false, and justify your answer. Unlike the usual measure of elasticity, an arc elasticity can be calculated from just one price–quantity data point.
Indicate whether the statement is true or false, and justify your answer. Both the RAND and Oregon studies find that demand for health care is approximately unit elastic, that is, ε ≈ − 1.
Indicate whether the statement is true or false, and justify your answer. In the RAND HIE, being assigned more generous insurance did not generally improve participants’ health outcomes, except
Indicate whether the statement is true or false, and justify your answer. To date, no major health insurance experiment has studied the impact of uninsurance, just different levels of insurance.
Indicate whether the statement is true or false, and justify your answer. Results from the Oregon Medicaid Experiment suggest that having health insurance has a positive impact on health status.
Preventative care refers to care taken to prevent future diseases rather than to treat current ones. Compared with ER care, preventative care is rarely urgent, and benefits can be difficult to
Suppose you are collecting data from a country like Japan where the government sets the price of health care. Each prefecture in Japan has a different set of prices (for example, Tokyo has higher
In this exercise, assume that the term “admission” in Table 2.15 refers to inpatient care, while “any use” refers to inpatient and outpatient care.Table 2.15 contains a lot of information.
Here is a selection from an abstract of a recent study entitled “The effect of health insurance coverage on the use of medical services” by Michael Anderson, Carlos Dobkin, and Tal Gross (2010).
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
Indicate whether the statement is true or false, and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of
The Grossman model envisions consumers deciding between investments in health H and investments in home goods Z. Figure 3. 15 depicts a typical consumer’s production possibility frontier for health
Suppose a new miracle pill is discovered that increases both the marginal health effects of health investment (at any given level of health investment) and the maximum level of attainable health from
Suppose individual A received a much better education than individual B, and consequently earns twice as much per hour of labor.a. If both individuals work 40 hours a week, who will have greater
True or false? According to the Grossman model, if a new drug were discovered that eliminated the steady deterioration of health that accompanies aging – but does not eliminate sudden events like
How does aging change the shape or size of the PPF in the Grossman model from period to period? Draw a graph to demonstrate the effect of aging, and include a short paragraph of text justifying the
Suppose we are considering a hungry individual in the Grossman model deciding what to have for dinner. His options are listed in Table 3.2. Each dish has an effect on the level of the home good Z and
One curious finding from the RAND Health Insurance Experiment was that the rate of treated bone fractures per capita was higher in the group of families that had been assigned to the free insurance
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