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| Preface | |
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| Basic Economics Tools | |
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| Introduction | |
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| The Relevance of Health Economics | |
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| Economic Methods and Examples of Analysis | |
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| Does Economics Apply to Health and Health Care? | |
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| Is Health Care Different? | |
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| New Challenges to Health Economists - Managed Care, Health Care Costs, and Health Insurance | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Microeconomic Tools for Health Economics | |
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| Scarcity and the Production Possibilities Frontier | |
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| Practice with Supply and Demand | |
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| Functions and Curves | |
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| Consumer Theory: Ideas Behind the Demand Curve | |
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| Individual and Market Demands | |
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| Elasticities | |
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| Production and Market Supply | |
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| The Firm Supply Curve Under Perfect Competition | |
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| Monopoly and Other Market Structures | |
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| Welfare Losses | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Statistical Tools for Health Economics | |
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| Hypothesis Testing | |
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| Difference of Means | |
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| Regression Analysis | |
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| Multiple Regression Analysis | |
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| Statistical Inference in the Sciences and Social Sciences | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Economic Efficiency and Cost Benefit Analysis | |
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| Economic Efficiency | |
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| Cost-Benefit Analysis: Background | |
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| Cost-Benefit Analysis: Basic Principles | |
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| Cost-Effectiveness Analysis | |
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| Cost-Utility Analysis, QALYs, and DALYs | |
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| Is CUA Consistent with CBA? | |
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| Extra-Welfarism | |
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| The Ageism Critique of QALYs | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Discounting | |
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| Supply and Demand | |
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| The Production of Health | |
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| The Production Function of Health | |
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| The Historical Role of Medicine and Health Care | |
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| The Production Function of Health in the Modern Day | |
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| The Role of Schooling | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| The Production, Cost, and Technology of Health Care | |
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| Production and the Possibilities for Substitution | |
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| Costs in Theory and Practice | |
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| Technical and Allocative Inefficiency | |
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| Technological Changes and Costs | |
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| Diffusion of New Health Care Technologies | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Demand for Health Capital | |
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| The Demand for Health | |
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| Labor-Leisure Trade-Offs | |
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| The Investment/Consumption Aspects of Health | |
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| Investment over Time | |
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| The Demand for Health Capital | |
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| Changes in Equilibrium: Age, Wage, Education, and Uncertainty | |
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| Empirical Analyses Using Grossman's Model | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Demand and Supply of Health Insurance | |
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| What Is Insurance? | |
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| Risk and Insurance | |
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| The Demand for Insurance | |
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| The Supply of Insurance | |
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| The Case of Moral Hazard | |
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| Health Insurance and the Efficient Allocation of Resources | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Consumer Choice and Demand | |
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| Applying the Standard Budget Constraint Model | |
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| Two Additional Demand Shifters-Time and Coinsurance | |
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| Issues in Measuring Health Care Demand | |
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| Empirical Measurements of Demand Elasticities | |
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| Impacts of Insurance on Aggregate Expenditures | |
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| Other Variables Affecting Demand | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Information and Insurance Markets | |
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| Asymmetric Information and Agency | |
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| Overview of Information Issues | |
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| Asymmetric Information | |
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| Appllication of the Lemons Principle: Health Insurance | |
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| The Agency Relationship | |
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| Consumer Information, Prices, and Quality | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| The Organization of Health Insurance Markets | |
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| Loading Costs and the Behavior of Insurance Firms | |
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| Employer Provision of Health Insurance: Who Pays? | |
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| Employer-Based Health Insurance and Labor Supply | |
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| The Market for Insurance | |
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| The Uninsured: An Analytical Framework | |
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| Insurance, Technological Change, and Higher Costs | |
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| Evidence on Insurance, Technological Change, and Inflation | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Managed Care | |
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| What Is the Organizational Structure? | |
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| What Are the Economic Characteristics? | |
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| The Emergence of Managed Care Plans | |
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| Development and Growth of Managed Care: Why Did It Take So Long? | |
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| Modeling Managed Care | |
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| How Does Managed Care Differ?-Empirical Results | |
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| Growth in Spending | |
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| Competitive Effects | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Nonprofit Firms | |
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| An Introduction to Nonprofits | |
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| Why Nonprofits Exist and Why They Are Prevalent in Health Care | |
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| Models of Nonprofit Hospital Behavior | |
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| The Relative Efficiency of Nonprofits Versus For-Profits | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Key Players in the Health Care Sector | |
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| Hospitals and Long-Term Care | |
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| Background and Overview of Hospitals | |
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| Hospital Utilization and Costs | |
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| Nursing Homes | |
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| Hospice, Home Health, and Informal Care | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| The Physician's Practice | |
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| A Benchmark Model of the Physician's Practice | |
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| Supplier-Induced Demand (SID) | |
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| Small Area Variations (SAV) | |
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| Other Physician Issues and Policy Puzzles | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Health Care Labor Markets and Professional Training | |
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| The Demand for and Supply of Health Care Labor | |
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| Factor Productivity and Substitution Among Factors | |
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| Health Manpower Availability and the Meaning of Shortages | |
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| Medical Education Issues and the Question of Control | |
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| Licensure and Monopoly Rents | |
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| Other Physician Labor Issues | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| The Pharmaceutical Industry | |
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| Structure and Regulation | |
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| The Production of Health and Substitutability | |
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| Drug Pricing and Profits | |
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| R&D and Innovation | |
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| Cost Containment | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Social Insurance | |
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| Equity, Efficiency, and Need | |
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| Efficiency and Competitive Markets | |
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| Deviations from the Competitive Model in the Health Care Sector | |
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| Promoting Competition in the Health Care Sector | |
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| An Economic Efficiency Rationale for Health Care Programs Based on Externalities | |
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| Need and Need-Based Distributions | |
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| Horizontal Equity and Need | |
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| Theories of Social Justice | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Government Intervention in Health Care Markets | |
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| Economic Rationale for Government Intervention | |
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| Forms of Government Intervention | |
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| Government Involvement in Health Care Markets | |
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| Government Failure | |
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| Competitive Strategies | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Government Regulation: Principal Regulatory Mechanisms | |
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| Do the Laws of Supply and Demand Apply? | |
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| Objectives of Regulation | |
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| Regulation of the Hospital Sector | |
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| Prospective Payment | |
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| The Theory of Yardstick Competition and DRGs | |
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| Prospective Payment: Recent Evidence | |
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| Regulation of Physician Payment | |
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| Antitrust | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Social Insurance | |
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| Social Insurance Policies and Social Programs | |
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| Historical Roots of Social Insurance | |
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| Medicare and Medicaid in the United States | |
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| Public Insurance and Health | |
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| The Effects of Medicare and Medicaid | |
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| Criticisms of the U.S. Health Care System | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Comparative Health Care Systems and Health System Reform | |
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| Contemporary Health Care Systems | |
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| National Health Programs: United Kingdom and Germany | |
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| The Canadian Health Care System | |
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| Different Systems: The Public's Evaluation | |
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| Differences in Health Care Spending Across Countries | |
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| National Health Insurance | |
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| Ensuring Access to Care | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Special Topics | |
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| The Health Economics of Bads | |
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| An Introduction to Bads | |
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| Models of Addiction | |
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| Rationales for Public Intervention | |
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| Advertising Restrictions on Cigarettes and Alcohol | |
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| Excise Taxes and Consumption of Cigarettes and Alcohol | |
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| Conclusions | |
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| Summary | |
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| Discussion Questions | |
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| Exercises | |
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| Epidemiology and Economics: HIV/AIDS in Africa | |
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| Concepts from Epidemiology | |
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| Economic Epidemiology | |
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| Case Study: HIV/AIDS in Africa | |
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| Conclusions | |
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| Summary | |
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| Discussion-Questions | |
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| Exercises | |
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| Glossary | |
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| References | |
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| Name Index | |
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| Subject Index | |