Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
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Question
Chapter 3, Problem 19EQ
To determine
The relation between wealth level and health status by Grossman model framework.
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There is a consensus among health economists that socioeconomic status (SES) has a
major impact on health, but health does not have a significant effect on SES.
True
False
The following is an abstract from the paper "Discrimination in Health Care: A Field Experiment on
the Impact of Patients' Socioeconomic Status on Access to Care," by Silvia Angerer, Christian Waibel,
and Harald Stummer.
We employ a large-scale field experiment to investigate the impact of patients' socioeconomic
status on access to care. We request an appointment at more than 1,200 physicians in Austria,
varying the educational level of the patient. Our results show that overall patients with a university
degree receive an appointment significantly more often than patients without a degree.
Differentiating between practice assistants and physicians as responders, we find that physicians
provide significantly shorter response times and marginally significant shorter waiting times for
appointments for patients with than without a university degree. Our results thus provide
unambiguous evidence that discrimination by health providers contributes to the gradient in access
to care.…
Which of the following hypotheses argues that a third variable, "patient", determines
both health and wealth:
Fuchs hypothesis
efficient producer hypothesis
thrifty phenotype hypothesis
allostatic load hypothesis
access to care hypothesis
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- One hypothesis for explaining the socio-economic disparities in health is known as the "direct income hypothesis." This theory states that health disparities arise because higher income individuals have more resources available to invest in health. In the context of the Grossman model, everything else held constant, we would expect For the higher-income individual to have a higher rate of health depreciation The Marginal efficiency of capital curve to be shifted inward (to the left) for the higher-income individual For the higher-income individual to have less productive time available. the PPF for the higher-income individual to be shifted outward compared to the lower-income individualarrow_forwardSuppose that in the fictional country ASU in 2012, a mandate was passed where everyone between the ages of 23-25 will receive health insurance at a discounted rate, while individuals aged 27-29 were not impacted by this policy. You, a researcher, want to study the effect of offering discounted health insurance coverage on the use of mental health services. You have data on the average number of visits for these two age groups over time. Using the information in the table below, a quick difference-in-difference calculation suggests that the mandate led to Time Periods Age group Avg. Avg. Number of Number of visits visits Pre-2012. Post-2012 23 to 25 2.3 27 to 29 2.5 approximately 0.3 more visits. approximately 0.7 more visits. approximately 0.4 fewer visits. approximately 0.7 fewer visits. approximately 0.3 fewer visits. 020202 337 SUCHARY 3.0 2.9 P 1302 126 70 5572 25 20120822 2012 Carrow_forwardAccording to Barr, the SES into which you were born and spent your childhood has more predictive power for health as an adult than does your SES category as an adult. True Falsearrow_forward
- The following is the abstract from the paper, "The Impact of Health Insurance on Preventive Care and Health Behaviors: Evidence from the First Two Years of the ACA Medicaid Expansions," by Simon, Soni, Cawley (2017). The U.S. population receives suboptimal levels of preventive care and has a high prevalence of risky health behaviors. One goal of the Affordable Care Act (ACA) was to increase preventive care and improve health behaviors by expanding access to health insurance. This paper estimates how the ACA-facilitated state-level expansions of Medicaid in 2014 affected these outcomes. Using data from the Behavioral Risk Factor Surveillance System, and a difference-in-differences model that compares states that did and did not expand Medicaid, we examine the impact of the expansions on preventive care (e.g., dental visits, immunizations, mammograms, cancer screenings), risky health behaviors (e.g., smoking, heavy drinking, lack of exercise, obesity), and self-assessed health. We find…arrow_forwardQuality Health Care in the U. S. In his inauguration address, U. S. President Barack Obama mentioned the poor state of the U. S. health care system as a fundamental issue facing the nation and his administration. The sobering truth of America’s health care system is that it dramatically under-performs. In an August 2008 poll by the Commonwealth Fund, 8 of 10 adults agreed with the statement that the health care system “needs either fundamental change or complete rebuilding”. This becomes even clearer when comparing the system with those of its international peers. In 2000, the World Health Organization ranked the performance of the U. S. health care system 37th in the world. In this and other international comparisons, despite spending more than twice per capita than other developed countries, the U. S. were beaten on virtually every metric of health care cost, quality and access. In other words, they spend more and get less. Scoring the U. S. health care system on key benchmarks…arrow_forwardWhile it may seem intuitively obvious that health expenditures will increase as a population ages – older people after all are less healthy on average than younger people in fact, several prominent health economists have argued that it is not aging per se, but rather some of the correlates of an aging population that cause health expenditures to rise as a population ages. For instance, Getzen (1992) argues that, at least in part, rising health expenditures with an aging population are due to the higher incomes and resources of the older population; health care is a normal good, so higher incomes lead to higher expenditures. In a similar manner, Zweifel et al. (1999) argue that the real problem with an aging population, at least as far as health care costs are concerned, is that there will be more people who are within a couple of years of dying. Since health care expenditures rise sharply close to the end of life, it is this, rather than population aging by itself, that leads to higher…arrow_forward
- Which statement about the individual health insurance market in the U.S. is correct? Question options: 1) Among the non-elderly with private health insurance, about one-third now purchase it in the individual market 2) Individual market enrollment increased with implementation of the Affordable Care Act in 2014, but it has declined in every year since 3) According to data from the Kaiser Family Foundation, On-Exchange enrollment has been roughly constant (varied by less than 1 million) since 2015 4) According to data from the Kaiser Family Foundation, Off-Exchange enrollment has grown relative to On-Exchange since 2015arrow_forwardSuppose Bethilda earned $30,000 at her last job where she faced a 3% chance of dying on the job. Now Bathilda earns $27,000 at a new job where she faces a 2% chance of dying on the job. What is Bethilda’s implied Value of a Statistical Life? What are the uses of this measure?arrow_forwardJob-specific human capital. 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 selection problem if the labor market is competitive. Suppose that there are two types of workers – sickly workers with probability ps of falling ill over the course of the next year, and robust workers with probability pr < ps of falling ill. Employers cannot observe whether a worker is sickly or robust, and because of U.S. law they can only decide to offer health insurance to allof their workers, or none at all. We will assume that a just-hired employee is less productive than an employee who has more experience; let MPn be the marginal value product of new employees, and MPe > MPn be the marginal value product of experienced employees. In this simple model, marginal value product depends only on experience, not on whether a worker is sickly or robust.…arrow_forward
- Suppose you are currently (i.e. 2024) performing a cost-effectiveness analysis and you wish to include the cost per visit of a hospital admission for an acute ischemic stroke in a patient without major complications or comorbidities in your analysis. The Agency for Healthcare Research and Quality's HCUP National Inpatient Sample online database reports the following information for 2015: 2015 National Medicare-Severity Diagnosis Related Groups (MS-DRG): #063 Acute ischemic stroke w use of thrombolytic agent w/o cc/mcc Number Total number of discharges: N All discharges + Rate Rate of discharges per 100,000 persons 2.2 Length of stay LOS (length of stay), days (mean) 3.0 LOS (length of stay), days (median) 3.0 Hospital charges Charges, $ (mean) 63,243 Hospital costs Costs, $ (mean) 15,239 + Due to the transition from ICD-9-CM to ICD-10-CM in October 2015, these 2015 statistics were calculated using only quarter 1-3 data, and the statistics available are limited What would you use for…arrow_forwardWhich of the following results from a process in which the individual can only influence the probability of transitions from one health state to another? Health promotion Health status Health equity Health disparitiesarrow_forwardIn the framework of the Grossman model, suppose there is an increase in the return in alternate non-health market investments. Draw what happens to the MEC curve and the optimal level of health. Explain intuitively why this might be the case in reality.arrow_forward
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