Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 14AP
(a)
To determine
Determine the health disparity.
(b)
To determine
Determine the nationwide cancer rate for nobles as well as peasants.
(c)
To determine
The Simpson’s paradox.
(d)
To determine
Determine the three conditions for the situation of Simpson’s paradox.
(e)
To determine
Prove that Simpson’s paradox will not occur if the population of nobles and peasants are same in both towns.
(f)
To determine
Determine whether Simpson’s paradox may invalidate due to some of the evidence for health disparities.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Assume the following utility functions: U₁ = x2/3 and U₂ = x
1. What is the marginal utility of both utility functions?
2. Draw a graph showing the marginal utility of both functions in terms of number of contacts.
Assuming that the marginal cost of a disease remains constant at 0.5, how many contacts would
the two persons with utility functions U, and U, choose to have? Explain your answer
While it may seem intuitively obvious that health expenditures will increase as a population age – older people, after all, are less healthy on average than younger people – in fact, several prominent health economists have argued that it is not ageing per se, but rather some of the correlates of an ageing population that cause health expenditures to rise as population ages. For instance, Getzen (1992) argues that, at least in part, rising health expenditures with an ageing 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 ageing 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 ageing by itself, that leads to…
Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta is on Insurance B and everyone in country
Gamma is on Insurance G. Suppose further that both governments use government-set price controls.
In 2005, country Beta decided to change the reimbursement rate for pharmaceuticals, but country Gamma did not make this change. You, a researcher.
want to study the effect of offering coverage for this drug had an impact on health expenditures. You have average health expenditures for State Beta
and Gamma prior to 2005 and post-2005. Using the information in the table below, a quick difference-in-difference calculation suggests covering this
drug
health expenditures by approximately.
Time Periods
Pre-2005 Post-2005
$1000 $1400
$1500 $1700
State
State
Beta
State
Gamma
decreased: $400
increased; $200
decreased: $200
increased; $400
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- You have been recruited as an expert in health economics to recommend what is the best therapy for a group of patients. In the image below you will find the decision tree showing the probabilities for different health states and outcomes for patients undergoing two possible treatments, No drug therapy and Drug therapy. Based on the expected cost, which therapy would you recommend as the least expensive? Explain how you arrived at your recommendation and show your calculations the space provided. No drug theraphy ? Drug theraphy ? HEALTH STATES PROBABILITIES Remain in Good Health 0.5 Develop disease A 0.2 Develop disease B 0.2 Die 0.1 Remain in Good Health 0.53 Develop disease A 0.16 Develop disease B 0.22 Die 0.09 OUTCOMES (Costs) $0 $400 $300 $200 SO $800 $500 $0arrow_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_forwardSuppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta is on Insurance B and everyone in country Gamma is on Insurance G. Suppose further that both governments use government-set price controls. In 2005, country Beta decided to change the reimbursement rate for pharmaceuticals, but country Gamma did not make this change. You, a researcher, want to study the effect of offering coverage for this drug had an impact on health expenditures. You have average health expenditures for State Beta and Gamma prior to 2005 and post-2005. Using the information in the table below, a quick difference-in-difference calculation suggests covering this drug ____ health expenditures by approximately ____. State Time Periods Pre-2005 Post-2005 State Beta $1000 $1400 State Gamma $1500 $1700 a. decreased; $400 b. increased; $200 c. increased; $400 d. decreased; $200arrow_forward
- An article in JAMA by Mandelblatt et al (2002) compared the societal costs and benefits of human papillomavirus (HPV) testing, Pap testing, and their combination to screen for cervical cancer. The paper studied 18 different population screening strategies – Pap testing alone, HPV testing alone, and Pap plus HPV testing – every 2 or 3 years for women beginning at age 20 and continuing to 65 years, 75 years, and death. The following table summarizes some of the results (low cost to high cost). Costs include screening and treatment costs, discounted over the individual’s expected lifetime. Strategy Cost ($) QALYs Saved Incremental Cost Incremental QALY ICER* 0. No screening 5,000 26.87 1. Pap every 3 years to age 75 6,825 27.02 2. HPV every 3 years to age 75 6,950 27.02 3. Pap every 2 years to age 75 7,275 27.04 4. Pap + HPV every 3 years to age 75 7,400 27.04 5. HPV every 2 years to age 75 7,450…arrow_forwardWhich statement about health insurance in the US is false? Question options: 1) Going back to 1940, only about 10 percent of the US population had any health insurance 2) The share of the under-65 population with private health insurance rose until the 1970s and then plateaued—it remained virtually constant until the implementation of the Affordable Care Act 3) Early on, the health insurance market was dominated by Blue Cross plans, which practiced community rating in setting premiums 4) Measured in percentage points, the drop in the uninsured rate in the nonelderly population between 2013 and 2016 was larger than the increase in the share with private insurancearrow_forwardIn order to change the root causes of health disparity in the US, both popular and political will are needed. Based on what you have learned in this module, imagine how different the US would be if all people living here had social protections like universal health care, secure pensions, guaranteed job training, and placement assistance, 80% unemployment pay, income supports for families and unemployed single adults, paid parental leave, and universal childcare. With this concept in mind, for your initial discussion post, comment on whether or not you would be willing to pay 20% more of your income, to have all these benefits guaranteed to you.arrow_forward
- Suppose we allocate a fixed budget for tuberculosis screening between two alternatives: screening the population generally, which has a marginal cost per test of MCG and a marginal benefit of MBG additional cases detected per test, and screening in homeless shelters, with a corresponding MCS and MBS. Assume it is currently true that MBG/MCG < MBS/MCS. Understanding that MB decreases (increases) as quantity increases (decreases) and the reverse is true for MC, we can conclude that: a. too much screening is being done at homeless shelters relative to general screening. b. too much general screening is being done relative to screening at homeless shelters. c. the price of screening in homeless shelters is too high. d. the allocation is already optimal if there is a fixed budget because we can’t equate the ratios of marginal benefit and marginal cost. e. we can only make the allocation optimal if the prices can be changedarrow_forwardBased on the data presented in the table below estimate elasticity of demand for two price changes: a) price increase from $3 to $9 per hour; and b) price decrease from $9 to $3 per hour. Make sure to use the single point elasticity equation formula. Price Per Hour of Therapy Demand for Therapy 0 16 1 15 2 14 3 13 4 12 10 5 11 6 10 7 9 8 8 9 7 10 6 11 5 12 4 13 3 14 2 15 1 16 0arrow_forwardSuppose that some members of a population are infected with a sexually transmitted virus that causes disease X, and some are infected with another sexually transmitted virus that causes disease Y. Some members of the population may be infected with both viruses. While diseases X and Y are similar in that they are both sexually transmitted diseases, the disease X is much more harmful to its carriers than the disease Y is to its carriers. Condom use is highly effective in preventing the transmission of either disease. Suppose scientists discover a cure for the sexually transmitted disease X. This cure (a vaccination) will eliminate the virus causing the disease X from its carrier before its carrier can suffer any harm from the virus. Everybody is immediately given this vaccination against the disease X. What do you expect to happen to the rate of condom use in the population over time? Add a curve for the rate of condom use to your graph.arrow_forward
- Suppose that some members of a population are infected with a sexually transmitted virus that causes disease X, and some are infected with another sexually transmitted virus that causes disease Y. Some members of the population may be infected with both viruses. While diseases X and Y are similar in that they are both sexually transmitted diseases, the disease X is much more harmful to its carriers than the disease Y is to its carriers. Condom use is highly effective in preventing the transmission of either disease. Suppose scientists discover a cure for the sexually transmitted disease X. This cure (a vaccination) will eliminate the virus causing the disease X from its carrier before its carrier can suffer any harm from the virus. Everybody is immediately given this vaccination against the disease X. a. What do you expect to happen to the prevalence of the virus causing the disease X in the population? Draw a graph with time on the horizontal axis and prevalence of the virus causing…arrow_forwardRefer to tables 14.4 and 14.5 given in the link “Numerical Problem”. Use information from these tables to discuss the following questions: Which country has the highest proportion of public insurance as a source of health care expenditure? Which country has a higher use of private insurance as a source of health care expenditure? Which country’s numbers shocked you the most? Discuss whether the US has better or worse health outcomes compared to other countries. Which country has a better access to primary care services? Which country has better access to specialist care services?arrow_forwardIndicate 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 occurring, it must be cost-effective.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
