According to Grossman model, what would happen to the demand for health stock if wages go down? A) Would MEI shift to the right/left/stay the same? B) would MC curve shift up/down/stay the samer C) would optimal level of heath stock go up/down/stay the same?
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According to Grossman model, what would happen to the
A) Would MEI shift to the right/left/stay the same?
B) would MC curve shift up/down/stay the samer
C) would optimal level of heath stock go up/down/stay the same?
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- In 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.One of the most robust, fundamental “facts” of health economics is the SES and health gradient. a) Define the SES and health gradient. b) Give three ways in which the SES and health gradient is robust. c) Provide evidence that some of the gradient is correlational (i.e., give a potential confounder) and evidence that the gradient is in fact causal. d) i. Give an interpretation of Figure 1 below in layperson terms. ii. What pattern do you see for men vs women? iii. “The education and mortality gradient does not depend on healthcare spending or whether the country has universal healthcare.” Use Figure 1 to support or refute this claim.One major premise of the Rothschild–Stiglitz model is that there is a perfectly competitive market for health insurance. Suppose instead that the market is not perfectly competitive, and in fact competitor firms have a hard time entering the market. Could a pooling equilibrium occur in this case? What is it about competition that prevents pooling in the Rothschild–Stiglitz model? No formal proof is necessary, but do make your reasoning clear. Evaluate the following statement: competition in health insurance markets is harmful.
- 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.The thrifty phenotype hypothesis states that early-life events after birth have a strong influence on health status even in adulthood.Indicate whether the statement is true or false, and justify your answer.In the Grossman model, the marginal efficiency of investment in health care declines as health improves.
- Indicate whether the statement is true or false, and justify your answer.The fact that older people spend more on health care is evidence against theGrossman model, which predicts that spending will decline as δ increases.[A] High-income Canadians tend to choose a higher desired health stock, even though they can afford more healthcare goods. Using the Grossman model, explain why this is the case. Use an appropriate graph to support your answer. [B] Suppose the funding agency switches both physicians' and hospitals' prospective payment to a system of retrospective payment, i.e., from salary to fee-for-service for physicians, and from global budget payment to activity-based funding for hospitals. Clearly explain each of these terms and how these changes will impact the utilization of physician and hospital services.TRUE or FLASE? A. The Beveridge model in the United Kingdom reduces moral hazard by having public providers compete to provide high quality care. B. The Bismarck Model in Germany reduces adverse selection primarily by having a universal, compulsory health insurance system. C. The Bismarck Model in Germany emphasizes equity over choice whereas the Beveridge Model in the United Kingdom emphasize choice over equity. D. The Bismarck Model in Germany reduces moral hazard by requiring cost sharing. E. The Bismarck Model in Germany controls costs by allowing private insurers to negotiate competitive rates with private physicians.
- In the Grossman model of health production, people maximize lifetime utility overconsumption of health (H) and a composite of all other goods (X). In the model, health is a stockthat evolves over time and depends upon health in the previous period (Ht-1), investments inhealth during the previous period (It-1), and a depreciation rate (γ). The level of health in period tis Ht=(1- γ)Ht-1+It-1.a. Consider two individuals with H=50 in the current period. The two individuals areidentical except that individual A is 20 years old and has a γ of 0.1, while individual B is30 years old and has a γ of 0.2. Explain why it is more difficult for individual B tomaintain the same level of health as individual A.b. Give 2 real-world examples of how an increase in education would improve a person’sproductivity of health investment (I).QUESTION 1The Grossman model views demand for health care as a result of the demand for “goodhealth”. Using the Grossman framework, answer the following:A. Discuss the utility of the Grossman model in the practice of modern healtheconomics.B. Describe two (2) factors that could influence the Cost of Capital (COC) in theGrossman model. C. Highlight at least three (3) criticisms against of the Grossman modelIndicate whether the statement is true or false, and justify your answer. Aging shifts the marginal efficiency of investment in health curve inward.
