Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 16EQ
(a)
To determine
Identify the theories that connect to the given results in the article.
(b)
To determine
Determine the role of natural experiment to determine a casual effect.
(c)
To determine
Explain the given statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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.
In what sense is a cost-of-illness study a technique of economic evaluation? In what sense is it not? What is the primary motivation for doing a cost-of-illness study?
In the early 2000s, the state of Massachusetts in the U.S. implemented a health reform aimed at enrolling people without health insurance into an insurance plan. The reform required people without health insurance (at least those who could afford it) to buy insurance, and put in place penalties on those who nevertheless chose not to buy insurance. Below is the abstract of a recent National Bureau of Economic Research working paper entitled “Health Reform, Health Insurance, and Selection: Estimating Selection into Health Insurance Using the Massachusetts Health Reform” by Martin Hackmann, Jonathan Kolstad, and Amanda Kowalski. The authors conducted a study of the effects of the Massachusetts reform. They write:
We implement an empirical test for selection into health insurance using changes in coverage induced by the introduction of mandated health insurance in Massachusetts. Our test examines changes in the cost of the newly insured relative to those who were insured prior to the…
Knowledge Booster
Similar questions
- An empirically testable hypothesis for additional health care expenditure as an investment rather than as an expense is: a. If an increase in health care expenditure today results in an increase in productivity tomorrow, then health careexpenditure has an investment effect. b. If an increase in health care expenditure today results in an a rise in health care stock prices, then health care expenditure has an investment effect. c. If an increase in health care expenditure today results in worse health outcomes today, then health care expenditure has an investment effect. d. If an increase in health care expenditure today results in a more competitive health care market tomorrow, then health care expenditure has an investment effect.arrow_forwardOne major premise of the Rothschild-Stiglitz (RS) 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 RS model? No formal proof is necessary, but do make your reasoning clear. Evaluate the following statement: competition in health insurance markets is harmful.arrow_forwardIndicate whether the statement is true or false, and justify your answer.In real life, investments in health can generate long-lasting benefits, but the Grossman model neglects this aspect of health.arrow_forward
- To test the parallel trends assumption, A. we check if Group A and Group B's average outcome follows a similar trend over multiple periods before Group A receives the treatment. B. we check if Group A and Group B's average outcome follows a similar trend after Group A receives the treatment. C. we check if Group A and Group B have the same average outcome before the treatment. D. Type or paste question herearrow_forwardThe following matrix represents a possible outcome of a two-factor experiment: No Treatment Treatment Male 20 15 Overall M = 17.5 Female 25 10 Overall M = 17.5 Overall M = 22.5 Overall M = 12.5 Which of the following statements is TRUE: Group of answer choices There is a main effect of gender, a main effect of treatment, and a gender by treatment interaction There is a main effect of gender, no main effect of treatment, and an interaction There is a main effect of gender, a main effect of treatment, and no interaction There is a main effect of treatment, no main effect of gender, and an interactionarrow_forwardA typical supply curve shows that an increase in the price of a good will cause producers to decrease the quantity they supply. a) True ( b) False The unemployment rate measures individuals 16 years of age and older without jobs who are actively seeking employment. ( a) True ( b) False It is important that any government examine multiple measures of its own economic health, rather than relying on simply one or two dimensions. () a) True ) b) Falsearrow_forward
- Here is a selection from an abstract of a recent study entitled “The effect of health insurance coverage on the use of medical services” by Michael Anderson, Carlos Dobkin, and Tal Gross (2010). NBER Working paper No. 15823. Substantial uncertainty exists regarding the causal effect of health insurance on the utilization of care. Most studies cannot determine whether the large differences in healthcare utilization between the insured and the uninsured are due to insurance status or to other unobserved differences between the two groups. In this paper, we exploit a sharp change in insurance coverage rates that results from young adults “aging out” of their parents insurance plans to estimate the effect of insurance coverage on the utilization of emergency department (ED) and inpatient services. [In the US, children are eligible for insurance coverage through their parents’ insurance only up to their 23rd birthday, at which point they lose eligibility.] Using the National Health…arrow_forwardIndicate 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 coverage to all citizens. That is, in such countries, poorer and richer citizens have (on average) the same health.arrow_forwardWhich of the following is NOT true? Group of answer choices On average, most costs of medical school are covered by student tuition Most who get accepted into a medical school attend one. Most who attend medical school graduate Most who graduate medical school go into a residency programarrow_forward
- Indicate whether the statement is true or false, and justify your answer.In the framework of the Grossman model, an individual’s level of health is completely controlled by her actions. Thus, in any given period, an individual is unconstrained in her choice of health status.arrow_forwardWhile 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…arrow_forwardIndicate 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.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
