HEALTH CARE ECONOMICS

Health Care Economics

APA Research Paper

Introduction

The positive relationship between health and economic resources has been accounted widely in the past studies. Pritchett and Summers (1996) found that the positive income effect on health is structural and causal using instrumental variables estimation with cross-country, time series data. Ettner (1996) revealed that an increase in income significantly improved mental and physical health using the same instrumental variable estimation.

In addition, Meer, Miller, and Rosen (2003) demonstrated that the causal link successively from wealth to health is actually deceptive, using individual-level data from the Panel Study of Income Dynamics and inheritance as an instrument for the change in wealth. Lastly, Adams et al. (2003) straight experienced for the nonexistence of causal links between mortality and health innovations , and socio-economic status (SES), using data from the Asset and Health Dynamics of the Oldest Old Panel, and got no assisting proof for a direct causal link between the incidence of most sudden onset health conditions and mortality, and SES.

Resources

Economic resources calculated by equivalized costs have a statistically noteworthy positive result on individual health. It is the consumption of medical care that cooperates like a mediator in clarifying the connection between health and economic resources. dependable outcome are established when both self-accounted and nurse-evaluated health signs are used and both wide and more precise gauges of medical care consumption are used. with the intention of evading the accessibility trouble of appropriate instrument variables, the link between health and economic resources by studying the intermediary role of medical care utilization was studied. Smith (2005) showed that new serious health events have a quantitatively large impact on work, income, and wealth. On the other hand, Case, Lutotsky, and Paxson (2002) and Currie and Stabile (2003) showed that household income protects children's health. As has been noted, it remains important to reconcile these results for better health policy.

Quality

Trade is not the goal of health care, it is the means. Health care costs so much because people are willing to pay for it. As a wealthy country, the United States was willing to spend more than 2.3 trillion dollars in 2007, $7,556 per person, supporting a dynamic and technologically sophisticated health care system.

Health care costs have time and again risen 2 to 5 percent more swiftly than incomes and now make up 17 percent of GDP. Costs are unevenly distributed. 70 percent of total health care dollars are ...