One hypothesis for exploring socioeconomic status health disparities hypothesis. This hypothesis states that repeated (or chronic) stress creates a cumulative physiological burden known as allostatic load. The theory predicts that people on the lower end of the socioeconomic status will have a higher allostatic load, negatively impacting health outcomes.In context of the Grossman model, we could say that individuals with lower levels of stress face a rate of health depreciation and will have optimal health as a result. the lower; higher higher; higher lower; lower higher; lower 000
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- Atl Econ J (2013) 41:8991DOI 10.1007/s11293-012-9342-2ANTHOLOGYSocial Capital and Income Inequality in the UnitedStatesRati RamPublished online: 17 October 2012# International Atlantic Economic Society 2012Many scholars have explored in recent years various correlates and consequences ofsocial capital along with discussions of the concept. For example, relationship ofsocial capital with population happiness, health, income, economic growth, andhuman development has been researched by several scholars. However, very fewstudies have considered the relationship between social capital and income inequality.One exception to that is the recent work by Robison et al. (Journal of SocioEconomics, 2011) which proposed a theoretical link between social capital andincome distribution and conducted an empirical exploration for the U.S. states forthe census years 1980, 1990, and 2000. Their key measure of social capital wassomewhat narrowly focused on percent of households headed by a single female…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?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.
- Do you think Canada's universal health care program can alleviate problems caused by moral hazard and adverse selection in the private insurance markets? Why or why not? John's utility curve over total wealth is given by U(W) =VW (i.e. square root of W). Suppose that he has a 50% chance of being healthy. If he is healthy, he gets all his wealth-$10,000. If he becomes sick, he only has $3,600 remaining after medical expenditures. Calculate John's wealth and utility when he does and does not get sick, his expected utility, expected wealth, and his expected loss. Now he has the option of buying health insurance Calculate the maximum amount John would be willing to pay to fully insure against the cost of the sickness. How much is the actuarially fair and risk premium? Suppose that society consists of large, equal numbers of identical male and identical female consumers. Male consumers are similar to John; female consumers differ only in that they face a 25% probability of being sick, but…How do you draw a health production function with individuals receiving some health producing intervention as inputs and health benefits as outputs that shows declining returns in output. What does “declining returns” imply about the marginal health benefit per person served/treated along this production function? How does this relate to “specialization of inputs”? How about “selection to treatment”? If we assume that you have two distinct means of producing health (programs A & B) with identical PFs as you drew above. Given a fixed amount of inputs (e.g. ability to treat/serve some number of individuals), draw the production possibilities frontier curve for these two programs. What is an opportunity cost and how does it relate to the PPF curve? If our value the health benefits from both programs equally, what point (label as X) do you pick on the PPF curve and why? Suppose program A works best for children, and program B best for adults, and you value health…What are the implications of the RAND Health Insurance Experiment results with regard to the production of health from medical care? Draw the implied PF for health outcomes given medical care, indicate (and explain) the point where the HIE suggests we are at. What does this imply with regard to health care cost containment polices like higher co-insurance rates?
- what is the relationship of macroeconomics to health economics? give the importance of its relationship.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.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 model
- Preventive care is not always cost-effective. Suppose that it costs $100 per person to administer a screening exam for a particular disease. Also suppose that if the screening exam finds the disease, the early detection given by the exam will avert $1,000 of costly future treatment. a. Imagine giving the screening test to 100 people. How much will it cost to give those 100 tests? Imagine a case in which 15 percent of those receiving the screening exam test positive. How much in future costly treatments will be averted? How much is saved by setting up a screening system? b. Imagine that everything is the same as in part a except that now only 5 percent of those receiving the screening exam test positive. In this case, how much in future costly treatments will be averted? How much is lost by setting up a screening system?[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.Let wtpi denote the willingness of person i from a population to pay for a new public project, such as a new park or the widening of an existing highway. You are interested in the e¤ects of various socioeconomic variables on wtp, and you specify the population model Rather than observe wtpi, each person in the sample is presented with a cost of the project, ri. At this cost the person either favors or does not favor the project. Let yi = 1 if person i favors the project and zero otherwise.