Questions and Answers of Health Economics

Munchausen’s syndrome is a psychiatric disease first recognized by doctors in the 1950s. Sufferers will feign unusual medical symptoms and seek out the most complicated treatments and procedures,
A recent paper entitled “Inheritances, health, and death” by Beomsoo Kim and Christopher Ruhm (NBER Working Paper No. 15364, 2009) reports the following:We examine how wealth shocks, in the form
Indicate whether the statement is true or false, and justify your answer. In the US, well-educated males can expect to live longer than poorly educated males.
Indicate whether the statement is true or false, and justify your answer. Unlike in the US, there are no socioeconomic status gradients in health in countries that provide universal health care
Indicate whether the statement is true or false, and justify your answer. Health status earlier in life is a good predictor of wealth later in life.
Indicate whether the statement is true or false, and justify your answer. According to Smith (1999), nearly all of the differences in health outcomes between rich and poor in America can be
Indicate whether the statement is true or false, and justify your answer. The thrifty phenotype hypothesis states that early-life events after birth have a strong influence on health status even in
Indicate whether the statement is true or false, and justify your answer. People who have a newly diagnosed chronic disease, such as diabetes, often suffer large declines in their wealth over time.
Indicate whether the statement is true or false, and justify your answer.In the Whitehall study, access to health care was a key variable determining the relative health outcomes of high- and
Indicate whether the statement is true or false, and justify your answer. One leading theory about why the poor are in worse health than the rich is that the rich enjoy a greater allostatic load.
Indicate whether the statement is true or false, and justify your answer. In a study of babies born during the Dutch famine toward the end of World War II, those exposed to the famine in utero were
Indicate whether the statement is true or false, and justify your answer. In Canada, unlike in the US, the gap between rich children and poor children in health status does not widen as children age.
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.There is a consensus among health
Table 4.5 shows data from Rich-Edwards et al. (2005) on the prevalence of various afflictions among female nurses who were born at different weights.a. Is it a coincidence that all nurses born at
Table 4.4 shows results from the study of diabetic patients discussed in Goldman and Smith (2002). Recall that three groups of patients separated by education level were treated with one of two
Simpson’s paradox. Recently, the king of the mythical nation of Pcoria was diagnosed with cancer. He noticed that many other nobles in his court had also been diagnosed with cancer recently. He
The following is an excerpt from the abstract of a recent journal article entitled “The effects of maternal fasting during Ramadan on birth and adult outcomes” by Almond and Mazumder (2007).
Below is the abstract of a recent National Bureau of Economic Research working paper entitled “Positive and negative mental health consequences of early childhood television watching” by Waldman
Indicate whether the statement is true or false, and justify your answer.Physicians in the US are licensed to practice medicine immediately after they complete medical school.
Indicate whether the statement is true or false, and justify your answer. The internal rate of return is defined as the interest rate that makes the net present value of an investment stream exactly
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.Consider two investment streams w
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.The number of US medical schools
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.The full economic cost ofmedical
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.Compared with doctors who are
Indicate whether the statement is true or false, and justify your answer. In part, physicians’ salaries are higher than secretaries’ salaries because it takes more years to train to become a
Indicate whether the statement is true or false, and justify your answer. The fact that practicing surgeons who have finished residency earn more than practicing pediatricians implies that the rate
Indicate whether the statement is true or false, and justify your answer. Once length of residency and hours of work are taken into account, the internal rate of return of choosing a specialized
Fun with IRR. Suppose you have just graduated from college and are deciding on a career. Your four career options, along with your salary in each of the four earning periods, are displayed in Table
Indicate whether the statement is true or false, and justify your answer. If physicians are earning monopoly rents, then there must be more barriers to entry in the labor market for physicians than
More fun with IRR. Refer to Table 5.3 about the payouts available at different jobs.a. Find the IRR for becoming an ophthalmologist as opposed to a professional sports star. Compare your result with
In each of the following situations, indicate whether the physician’s discriminatory action is taste-based or statistical.a. An American physician detests interacting with French people, so she
A recent study by Prof. Jessica Reyes at Amherst College finds that female gynecologists (doctors who specialize in women’s reproductive health) charge a standard fee for a basic patient visit that
Below is an excerpt from the abstract of a 2002 journal article entitled “Does regulation affect economic outcomes? The case of dentistry” by Morris Kleiner and Robert Kudrle:Theory suggests that
Indicate whether the statement is true or false, and justify your answer. Hospital admission rates have dropped in the past two decades.
Indicate whether the statement is true or false, and justify your answer. There were more hospitals in the US in the late 1990s than there were in 1940; the largest source of growth has been among
Indicate whether the statement is true or false, and justify your answer.The average length of hospital stays in the US has remained flat after a sharp decline in the 1980s.
Indicate whether the statement is true or false, and justify your answer. Higher values of the Herfindahl–Hirschman Index indicate higher levels of competition in those markets.
Indicate whether the statement is true or false, and justify your answer. The hospital’s experience with cardiac catheterization is at least as important as the cardiologist’s experience in
Indicate whether the statement is true or false, and justify your answer. Nonprofit firms can legally raise funds by issuing stock.
Indicate whether the statement is true or false, and justify your answer. Consider the following theory due to Arrow (1963): nonprofits exist because for-profit firms are less trustworthy in the
Indicate whether the statement is true or false, and justify your answer. Medical arms races, since they are a form of private competition, lead to socially optimal levels of technology acquisition
Indicate whether the statement is true or false, and justify your answer. Uncompensated care in the United States is almost entirely covered by government programs like Medicare and Medicaid.
Indicate whether the statement is true or false, and justify your answer. Doctors are typically direct employees of hospitals in the US, whereas in the UK, they do most of their work in private
Indicate whether the statement is true or false, and justify your answer.In a DRG payment system, hospitals receive payment according to the number of services rendered.
Suppose a hospital is planning how many patients to treat over the next two years. One key factor the hospital needs to consider in its planning is that hospitals that see many patients in one year
The Herfindahl–Hirschman Index, H, gives economists a way of measuring how much competition there is in a market. Suppose that there are N hospitals in a market, each with si percent of the market
Consider a two-hospital town with hospitals unimaginatively named A and B. The hospitals are considering installing a new imaging machine to attract more patients. The population of the town is small
Below is the abstract of a recent National Bureau of Economic Research working paper entitled “Can governments do it better? Merger mania and hospital outcomes in the English NHS” by Martin
Below is the abstract of a recent National Bureau of Economic Research working paper entitled “Human capital and organizational performance: evidence from the health care sector” by Ann Bartel,

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