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Health Economics, 2e
by Sloan, Hsieh
ISBN: 9780262364324 | Copyright 2017
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| Brief Table of Contents (pg. v) | |
| Contents (pg. vii) | |
| Preface (pg. xxvii) | |
| References (pg. xxxi) | |
| Acknowledgments (pg. xxxiii) | |
| Chapter 1 Introduction and Overview (pg. 1) | |
| 1.1 Health Economics as a Field of Inquiry (pg. 2) | |
| 1.2 Factors Accounting for the Growth of Health Economics (pg. 4) | |
| 1.3 Important Institutional Features of Health Care (pg. 10) | |
| 1.4 Government Intervention in Health Care Markets (pg. 16) | |
| 1.5 The Book’s Four Parts: A Road Map (pg. 20) | |
| 1.6 Conclusion (pg. 32) | |
| Key Concepts (pg. 32) | |
| Review and Discussion Questions (pg. 33) | |
| Exercises (pg. 33) | |
| Online Supplemental Material (pg. 34) | |
| Supplemental Readings (pg. 34) | |
| References (pg. 34) | |
| Part I Demand for Health, Health Care, and Insurance (pg. 37) | |
| Chapter 2 Health and Health Behaviors (pg. 39) | |
| 2.1 Rationality and Other Economic Assumptions (pg. 40) | |
| 2.2 Health Production Functions (pg. 43) | |
| 2.3 The Demand for Health: Health as a Capital Stock (pg. 45) | |
| 2.4 Measuring Health Capital (pg. 55) | |
| 2.5 Adding Uncertainty: Decision Trees, Backward Induction, and Decision Making under Uncertainty (pg. 59) | |
| 2.6 Consumer Choices about Health Behaviors: A General Framework (pg. 63) | |
| 2.7 Frontier Issues: The Behavioral Economics Critique—Theory and Evidence (pg. 69) | |
| 2.8 Summary and Conclusions (pg. 71) | |
| Key Concepts (pg. 72) | |
| Review and Discussion Questions (pg. 72) | |
| Exercises (pg. 73) | |
| Online Supplemental Material (pg. 77) | |
| Supplemental Readings (pg. 77) | |
| References (pg. 78) | |
| Chapter 3 Demand for Health Care Services (pg. 81) | |
| 3.1 Basic Economic Concepts of Demand (pg. 83) | |
| 3.2 Demand in the Context of Health Insurance Coverage (pg. 85) | |
| 3.3 The Concept of Time Price (pg. 92) | |
| 3.4 Empirical Studies of Demand (pg. 95) | |
| 3.5 Welfare Analysis (pg. 115) | |
| 3.6 Other Determinants of Demand for Personal Health Care Services (pg. 118) | |
| 3.7 Summary and Conclusions (pg. 119) | |
| Key Concepts (pg. 120) | |
| Review and Discussion Questions (pg. 121) | |
| Exercises (pg. 122) | |
| Online Supplemental Material (pg. 124) | |
| Supplemental Readings (pg. 124) | |
| References (pg. 125) | |
| Chapter 4 Demand for Private Health Insurance (pg. 127) | |
| 4.1 Relationships among Health, Health Insurance, and the Use of Personal Health Care Services (pg. 128) | |
| 4.2 Insurance Concepts and Terminology (pg. 130) | |
| 4.3 Diminishing Marginal Utility of Wealth and the Demand for Insurance (pg. 133) | |
| 4.4 Model of Demand for Insurance (pg. 136) | |
| 4.5 Empirical Issues (pg. 142) | |
| 4.6 Empirical Evidence on Adverse Selection in Private Health Insurance Markets (pg. 154) | |
| 4.7 “Risk Adjustment” and Adverse and Preferred Risk Selection (pg. 156) | |
| 4.8 Summary and Conclusions (pg. 159) | |
| Key Concepts (pg. 161) | |
| Review and Discussion Questions (pg. 161) | |
| Exercises (pg. 162) | |
| Online Supplemental Material (pg. 163) | |
| Supplemental Readings (pg. 163) | |
| References (pg. 164) | |
| Part II Supply of Health Care Services and Insurance (pg. 167) | |
| Chapter 5 The Market for Physicians’ Services (pg. 169) | |
| 5.1 Medical School Capacity and Concepts of Physician Shortage and Surplus (pg. 170) | |
| 5.2 Physician Supply in the Long Run (pg. 172) | |
| 5.3 Physicians’ Short-Run Decisions (pg. 186) | |
| 5.4 Price Discrimination (pg. 196) | |
| 5.5 Physician Services’ Markets When Fees Are Set by Physician-Insurer Bargaining (pg. 202) | |
| 5.6 Summary and Conclusions (pg. 203) | |
| Key Concepts (pg. 204) | |
| Review and Discussion Questions (pg. 204) | |
| Exercises (pg. 206) | |
| Online Supplemental Material (pg. 208) | |
| Supplemental Readings (pg. 208) | |
| References (pg. 209) | |
| Chapter 6 Hospitals (pg. 211) | |
| 6.1 Context (pg. 212) | |
| 6.2 Alternative Models of Hospital Behavior (pg. 213) | |
| 6.3 Hospital Ownership and Performance (pg. 221) | |
| 6.4 Regulation of Hospitals (pg. 230) | |
| 6.5 An Alternative to Regulating Hospitals: Increasing Competition among Hospitals (pg. 244) | |
| 6.6 Summary and Conclusions (pg. 251) | |
| Key Concepts (pg. 252) | |
| Review and Discussion Questions (pg. 253) | |
| Exercises (pg. 253) | |
| Online Supplemental Material (pg. 256) | |
| Supplemental Readings (pg. 256) | |
| References (pg. 257) | |
| Chapter 7 Quality of Care and Medical Malpractice (pg. 261) | |
| 7.1 Markets and Market Failure (pg. 261) | |
| 7.2 Characteristics of Health Care Quality (pg. 265) | |
| 7.3 Adverse Events and Negligent Injuries (pg. 269) | |
| 7.4 Supply-Side Quality-of-Care Safeguards and Government Oversight and Regulation (pg. 272) | |
| 7.5 Mandatory Error Reporting (pg. 275) | |
| 7.6 Tort Law as a Mechanism for Improving Patient Safety and Health Care Quality (pg. 277) | |
| 7.7 Medical Malpractice (pg. 286) | |
| 7.8 Does the Threat of Medical Malpractice Suits Deter Iatrogenic Injuries? (pg. 289) | |
| 7.9 Summary and Conclusions (pg. 295) | |
| Key Concepts (pg. 296) | |
| Review and Discussion Questions (pg. 296) | |
| Exercises (pg. 297) | |
| Online Supplemental Material (pg. 300) | |
| Supplemental Readings (pg. 300) | |
| References (pg. 301) | |
| Chapter 8 Nurses in Hospital and LongTerm Care Services (pg. 305) | |
| 8.1 Labor Markets for Nurses Worldwide (pg. 306) | |
| 8.2 Supply of Nurses: Too Many or Too Few? (pg. 311) | |
| 8.3 Empirical Estimates of Nurses’ Response to a Wage Change (pg. 324) | |
| 8.4 Nonwage Determinants of the Nurse Labor Supply (pg. 329) | |
| 8.5 Nurses in the Production of Hospital Services (pg. 331) | |
| 8.6 Nurses in the Production of Nursing Home Services (pg. 338) | |
| 8.7 Summary and Conclusions (pg. 344) | |
| Key Concepts (pg. 345) | |
| Review and Discussion Questions (pg. 345) | |
| Exercises (pg. 346) | |
| Online Supplemental Material (pg. 349) | |
| Supplemental Readings (pg. 349) | |
| References (pg. 349) | |
| Chapter 9 Pharmaceutical Manufacturers (pg. 353) | |
| 9.1 Companies’ Decisions about Investments in R&D (pg. 354) | |
| 9.2 Pricing of New Drugs (pg. 367) | |
| 9.3 Entry of Generic Drugs and Its Consequences (pg. 372) | |
| 9.4 Advertising (pg. 377) | |
| 9.5 Developing New Drugs for Rare Diseases and Diseases Prevalent in Low-Income Countries: Enforcement of Patent Rights Globally (pg. 383) | |
| 9.6 International Pricing (pg. 385) | |
| 9.7 Developing New Drugs: Rare Diseases and Diseases Prevalent in Low-Income Countries (pg. 392) | |
| 9.8 Implementation of Medicare Part D in the United States (pg. 397) | |
| 9.9 The Special Cases of Vaccines and Medical Devices (pg. 399) | |
| 9.10 Summary and Conclusions (pg. 403) | |
| Key Concepts (pg. 405) | |
| Review and Discussion Questions (pg. 406) | |
| Exercises (pg. 407) | |
| Online Supplemental Material (pg. 409) | |
| Supplemental Readings (pg. 409) | |
| References (pg. 410) | |
| Chapter 10 The Supply of Private Health Insurance (pg. 415) | |
| 10.1 The ABCs of the Business of Insurance (pg. 416) | |
| 10.2 Are Insurers’ Premiums and Returns Excessive? (pg. 423) | |
| 10.3 Private versus Public Provision of Health Insurance Coverage (pg. 425) | |
| 10.4 Employer-Based Private Health Insurance Coverage (pg. 430) | |
| 10.5 Government Regulation of Private Health Insurance (pg. 435) | |
| 10.6 Summary and Conclusions (pg. 457) | |
| Key Concepts (pg. 459) | |
| Review and Discussion Questions (pg. 459) | |
| Exercises (pg. 460) | |
| Online Supplemental Material (pg. 462) | |
| Supplemental Readings (pg. 462) | |
| References (pg. 462) | |
| Part III Market Structure in the Health Care Sector (pg. 467) | |
| Chapter 11 Private Financing of Health Care Services (pg. 469) | |
| 11.1 Rationale for Health Systems Analysis (pg. 470) | |
| 11.2 Classification of Health Care Systems (pg. 474) | |
| 11.3 Cash Systems (pg. 484) | |
| 11.4 The Private System: The US Experience (pg. 487) | |
| 11.5 The Managed Competition Model (pg. 489) | |
| 11.6 Comparisons between Singleand MultiplePayer Systems (pg. 491) | |
| 11.7 The Patient Protection and Affordable Care Act in the United States (pg. 494) | |
| 11.8 Summary and Conclusions (pg. 500) | |
| Key Concepts (pg. 502) | |
| Review and Discussion Questions (pg. 502) | |
| Exercises (pg. 502) | |
| Online Supplemental Material (pg. 504) | |
| Supplemental Readings (pg. 504) | |
| References (pg. 504) | |
| Chapter 12 Government Financing and Private Supply (pg. 509) | |
| 12.1 The Role of Government as a Payer: Rationale for the Public Provision of Health Insurance (pg. 510) | |
| 12.2 Evolution and Structure of the Payment System: German Statutory Health Insurance (pg. 522) | |
| 12.3 Evolution and Structure of the Payment System: The US Medicare Program (pg. 526) | |
| 12.4 Evolution of Payment Systems: The US Medicaid Program (pg. 536) | |
| 12.5 Evolution of Payment Systems: Canada’s Medicare (pg. 544) | |
| 12.6 Evolution of Payment Systems in Asian Countries on the Pacific Rim (pg. 547) | |
| 12.7 Discussion and Conclusions (pg. 556) | |
| Key Concepts (pg. 558) | |
| Review and Discussion Questions (pg. 558) | |
| Exercises (pg. 560) | |
| Online Supplemental Material (pg. 563) | |
| Supplemental Readings (pg. 563) | |
| References (pg. 564) | |
| Chapter 13 Public Supply and Financing (pg. 571) | |
| 13.1 The Rationale for Public Provision of Health Care (pg. 572) | |
| 13.2 Public Provision in High-Income Countries in Practice (pg. 580) | |
| 13.3 Public Provision of Personal Health Care Services in Other Countries (pg. 596) | |
| 13.4 The Evolution of China’s Health Care System (pg. 602) | |
| 13.5 Evaluation and Comparison of Health Care Systems (pg. 613) | |
| 13.6 Summary (pg. 622) | |
| Key Concepts (pg. 624) | |
| Review and Discussion Questions (pg. 625) | |
| Exercises (pg. 626) | |
| Online Supplemental Material (pg. 628) | |
| Supplemental Readings (pg. 628) | |
| References (pg. 629) | |
| Part IV Performance of the Health Care Sector: Positive and Normative Aspects (pg. 635) | |
| Chapter 14 Cost and Cost-Effectiveness Analysis (pg. 637) | |
| 14.1 Overview of Cost-Effectiveness and CostBenefit Analysis (pg. 638) | |
| 14.2 Cost-Effectiveness Analysis: Measuring Cost (pg. 642) | |
| 14.3 Cost-Effectiveness Analysis: Measuring Effectiveness (pg. 647) | |
| 14.4 Applications of Cost-Effectiveness Analysis (pg. 660) | |
| 14.5 Use of Economic Evaluation in Practice: Conclusions and Implications (pg. 670) | |
| Key Concepts (pg. 672) | |
| Review and Discussion Questions (pg. 672) | |
| Exercises (pg. 673) | |
| Online Supplemental Material (pg. 675) | |
| Supplemental Readings (pg. 675) | |
| References (pg. 675) | |
| Chapter 15 Measuring Benefits and CostBenefit Analysis (pg. 679) | |
| 15.1 Measuring Benefits in Cost-Benefit Analysis: A Review (pg. 680) | |
| 15.2 The Revealed Preference Approach (pg. 682) | |
| 15.3 The Stated Preference Approach (pg. 691) | |
| 15.4 Use of Cost-Benefit and Cost-Effectiveness Analysis in Public Decision Making (pg. 705) | |
| 15.5 Conclusion (pg. 708) | |
| Key Concepts (pg. 709) | |
| Review and Discussion Questions (pg. 709) | |
| Exercises (pg. 710) | |
| Online Supplemental Material (pg. 712) | |
| Supplemental Readings (pg. 712) | |
| References (pg. 712) | |
| Chapter 16 The Contribution of Personal Health Services to Longevity, Population Health, and Economi c Growth (pg. 715) | |
| 16.1 The Link between Health and Economic Sectors (pg. 716) | |
| 16.2 Effects of Health Care Financing on National Economies (pg. 721) | |
| 16.3 Secular Trends in Determinants of Health Inputs and Outputs (pg. 727) | |
| 16.4 Contributions of Personal Health Care Services to Improved Population Health (pg. 733) | |
| 16.5 Contribution of Improved Health to Economic Growth (pg. 743) | |
| 16.6 The Health Sector as a Job Machine (pg. 748) | |
| 16.7 Economic Growth and Disease Patterns (pg. 749) | |
| 16.8 Summary and Conclusions (pg. 750) | |
| Key Concepts (pg. 751) | |
| Review and Discussion Questions (pg. 752) | |
| Exercises (pg. 753) | |
| Online Supplemental Material (pg. 754) | |
| Supplemental Readings (pg. 755) | |
| References (pg. 755) | |
| Chapter 17 Frontiers of Health Economics (pg. 759) | |
| 17.1 Rational versus Irrational Decision Making in Health Care (pg. 759) | |
| 17.2 Information, Asymmetric Information, and Its Effects (pg. 762) | |
| 17.3 Industrial Organization of the Health Care Sector (pg. 765) | |
| 17.4 Final Word (pg. 770) | |
| Key Concepts (pg. 770) | |
| Review and Discussion Questions (pg. 771) | |
| Supplemental Readings (pg. 772) | |
| References (pg. 772) | |
| Index (pg. 775) | |
Frank A. Sloan
Frank Sloan, awarded the Victor R. Fuchs Award for Lifetime Contributions to the Field of Health Economics in 2016, is J. Alexander McMahon Professor of Health Policy and Management and Professor of Economics at Duke University. He is coauthor of The Price of Smoking (2004) and Medical Malpractice (2008) and coeditor of Incentives and Choices in Health Care (2008), all published by the MIT Press.
Chee-Ruey Hsieh
Chee-Ruey Hsieh is a Research Professor of Health Economics at Duke Global Health Institute, Duke University, and the Global Health Research Center, Duke Kunshan University.
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